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Dovator [93]
3 years ago
15

Producers must understand the marginal benefit of making an additional unit. True or False

Business
2 answers:
erastovalidia [21]3 years ago
8 0

Answer:

True

Explanation:

Benefit on manufacturing of each extra unit is known as marginal benefit. It is very important for a producer to understand the marginal benefit. If each Unit produced does not make a benefit for the producer its production should not continue. Compare the Marginal benefit with marginal cost to calculate net marginal benefit.

Dmitriy789 [7]3 years ago
6 0

Answer:

The answer is true.

Explanation:

Marginal benefit is related with the benefit of extra unit produced rather than looking at the overall production. This is important, as after a certain level of production, even though the overall benefit from the production increase, the marginal benefit might decrease.

Based on such observations, producers can make plans on what to produce and what should not be produced.

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