Suppose the Economy Is Producing at a Point on Its

Multiple Choice

Suppose the economy is producing at a point on its production possibilities curve where the marginal benefit of an additional unit of capital is $45. The marginal cost of an additional unit of capital is $30. In this instance:

A) the production of capital should decrease.
B) the production of capital should increase.
C) the production of capital should not be changed.
D) the production of capital should be decreased if many people in society are unemployed.