This is an interesting question that dives into the principles of economics, particularly the concepts of marginal benefit (MB) and marginal cost (MC). In theory, the optimal consumption point is where MB equals MC. This means we are getting just enough benefit from consuming an additional unit of a good or service to justify the cost of that unit.
To break this down further, let’s define the terms:
- Marginal Benefit (MB): This is the additional benefit received from consuming one more unit of a good or service.
- Marginal Cost (MC): This is the additional cost incurred from consuming one more unit of a good or service.
So, when MB equals MC, we are at a point of efficiency where the last unit consumed adds just enough value to our utility to cover any cost associated with it. At this stage, it does make sense to continue consuming because the marginal benefit still outweighs any additional costs.
However, you raised an essential point regarding whether consumption continues even when MB equals MC. The answer lies in individual preferences and circumstances. Many sources argue that consumption might persist even when MB is not greater than MC, as individuals often have varied perceptions of utility and may continue consuming until the marginal benefit drops significantly below the marginal cost.
Ultimately, consumers will keep consuming until the MB of the last unit consumed does not exceed the MC, and while some may stop exactly at the point where MB equals MC, others may have different criteria for their consumption choices. It’s this individual divergence that can lead to a variety of consumption experiences even in similar contexts.