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soldi70 [24.7K]
3 years ago
8

If someone produced too little of a good, this would suggest that rational choice cannot be applied to many economic decisions.

the good was produced past the point where its marginal cost exceeded its marginal benefit. government should intervene to produce more of the good. the good was produced to the point where its marginal benefit exceeded its marginal cost.
Business
1 answer:
juin [17]3 years ago
8 0
If someone produced too little of a good, this would suggest that the good was produced to the point where its marginal benefit exceeded its marginal cost.
Both are metrics used in economics for measurement of costs and benefits.
Marginal benefit is the gain the business receives for doing anything "one more time.", while marginal cost is the additional cost the business incurs to produce one more unit.
This means that if someone produced too little of a good, the business gained more than it lost.
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