For making efficient choices, what should marginal benefit do?

Marginal benefit represents the additional satisfaction or utility gained from consuming one more unit of a good or service. For efficient decision-making, the marginal benefit should outweigh the marginal cost. This means that as long as the benefit derived from an additional unit is greater than the cost incurred to obtain that unit, it is rational to continue the consumption or production until they equalize.

When the marginal benefit exceeds marginal cost, it implies that the consumer or producer is making a choice that increases their overall utility or profit. This is a fundamental principle in economics, guiding individuals and firms to maximize their efficiency in resource allocation. If marginal cost were to exceed marginal benefit, it would signal that resources are being wasted, as the cost of acquiring or producing one more unit is greater than the additional value it provides. Thus, pursuing a situation where marginal benefit exceeds marginal cost ensures that choices are made in a manner that leads to optimal outcomes.