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Marrrta [24]
4 years ago
5

People keep spending additional units of a particular resource on a want until their marginal benefit is their marginal cost

Social Studies
2 answers:
aliya0001 [1]4 years ago
8 0

Marginal cost refers to the amount of money it cost a company to produce one more of a particular product while the marginal benefit refers to the benefit that is obtained as a result of producing that one extra product. Profit is maximized when the marginal cost equals the marginal benefits.



olganol [36]4 years ago
3 0

Answer:

People keep spending additional units of a particular resource on a want until their marginal benefit is not affected by their marginal cost.

Explanation:

Marginal cost is the change in total cost when you increase or decrease the total output of goods or services in a unit. That is, it represents the individual cost of the last unit produced. On the other hand, marginal benefit is the profit generated from this production.

The ideal for an industry is to use a specific resource to produce a product, as long as this production does not affect the marginal benefit, that is, the company wants to spend money to produce its product, but this expense can not prevent the company from profiting.

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