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Answer
In microeconomics, optimizing resources means making decisions that lead to the best possible outcomes. When we talk about maximizing marginal benefits, we're focusing on getting the most value from each additional unit of a resource we use. However, it’s important to consider marginal costs as well, which are the costs associated with producing one more unit. If we only look at marginal benefits without thinking about these costs, we might end up using resources inefficiently, leading to waste. For example, if a factory decides to produce one more gadget because the benefit is high, but the cost of materials and labor is also high, the overall profit might decrease, showing that both benefits and costs must be balanced for true efficiency.
Detailed Explanation
Maximizing benefits is important, but we must also consider costs. Other options are incorrect because This option suggests that only focusing on benefits is enough.
Key Concepts
Optimization in Microeconomics
Marginal Benefits and Marginal Costs
Resource Allocation
Topic
Optimization in Microeconomics
Difficulty
medium level question
Cognitive Level
understand
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