Answer
MB and MC curves are typically bowed out from the origin. This reflects the increasing marginal costs.
The optimal allocation of resources is where MB = MC.
Work Step by Step
If MC exceeds MB, then less resources should be allocated to the product. This is because it costs the firm a lot to produce the good, whereas consumers are only buying a small quantity of the good. In this way, firms are facing a loss when MC exceeds MB.
