People keep spending additional units of a particular resource on a want until their marginal benefit is ________ their marginal cost.A. Decreasing with B. Greater than C. Less than D. Not Affected By

Social Studies · High School · Tue Nov 03 2020

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C. Less than

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

  • People will keep spending additional units of a particular resource on a want until their marginal benefit is less than their marginal cost. This is because individuals seek to optimize their utility, meaning they want the best outcome or benefit for the lowest cost.
  • When the marginal benefit, which is the additional benefit received from consuming one more unit of a good or service, is higher than the marginal cost, which is the additional cost of consuming one more unit, individuals are motivated to continue consuming.
  • However, as consumption increases, the marginal benefit typically decreases (due to diminishing marginal utility), and at some point, it will fall below the marginal cost, at which stage it is not rational to continue consuming further.

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