What happens if the marginal benefit is greater than the marginal cost?

1 answer

Answer

1022674

2026-03-05 14:50

+ Follow

If the marginal benefit is greater than the marginal cost, it indicates that the additional benefit gained from an action outweighs the additional cost incurred. This scenario suggests that the action is economically favorable and should be pursued, as it leads to an overall increase in welfare or profit. Consequently, decision-makers are likely to continue with the action until the marginal benefits and marginal costs become equal.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.