If a company finds that the marginal benefit of producing an additional unit of product is greater than the marginal cost, what is the most likely outcome of this analysis?

When a company discovers that the marginal benefit of producing one more unit of a product is greater than the marginal cost, it means that making that extra unit will add more value than it costs to produce. This situation encourages the company to increase production because it can earn more profit from selling that additional unit. For example, if producing one more toy costs the company $5, but they can sell it for $10, the $5 profit makes it worthwhile. The company will keep producing more units until the marginal cost rises to equal the marginal benefit. In this way, the analysis helps the company decide how much to produce for maximum profit.