Question

Specify and explain the typical shapes of the marginal-benefit and marginal-cost curves. How are these curves used to determine the optimal allocation of resources to a particular product. If current output is such that marginal cost exceeds marginal benefit, should more or fewer resources be allocated to this product? Explain.

Answer 1

Answer:

The completely accurate definition of the particular subject is outlined in the following subsection including its clarification.

Explanation:

• The marginal profit trajectory has so far been sloping down, MB decreases, and since most of a commodity is collected as much more quantities of something like a good offer fewer sense of achievement, unlike earlier versions. This same marginal cost of production is pointing down upward, becomes rising as more than just a commodity is generated as additional items need progressively inappropriate utilization of resources.
• The optimum amount of something like a given substance exists whenever MB is equivalent to MC. If MC reaches MB everything should still be made available fewer resources. In any other context, the services are more useful.