Final answer:
Maximizing overall benefit means achieving the highest net positive outcome, aligning with the utilitarian principle that actions should produce the greatest happiness for the greatest number. Price and marginal cost in economics help illustrate this, where a balance between them indicates maximum societal benefit.
Step-by-step explanation:
When a decision maximizes overall benefit, it means that it achieves the highest net positive outcome possible. This is often associated with the principle of utility, which is a central concept in consequentialist theories like utilitarianism. In economic terms, the market price (P) and marginal cost (MC) are used to illustrate this concept: if P > MC, more of a good should be produced as it results in a net benefit to society, indicating that the benefits exceed the social costs. Conversely, if P < MC, production should be reduced as the costs outweigh the benefits. Ultimately, the greatest overall benefit is achieved when P = MC, as this balance equates to the greatest net positive outcome for society, fulfilling the utilitarian goal of maximizing happiness or utility.