Producers must understand the marginal benefit of making an additional unit. True or False

The answer is true.

Explanation:

Marginal benefit is related with the benefit of extra unit produced rather than looking at the overall production. This is important, as after a certain level of production, even though the overall benefit from the production increase, the marginal benefit might decrease.

Based on such observations, producers can make plans on what to produce and what should not be produced.