Asked by heidy anastasia on May 30, 2024
Verified
In general,when marginal benefit is greater than marginal cost,the decision maker should do _____ of the activity.
A) less
B) that exact amount
C) more
D) none
Marginal Benefit
The supplementary enjoyment or value derived by a person upon consuming an extra unit of a particular good or service.
Marginal Cost
The cost of producing one additional unit of a good or service.
- Execute marginal analysis in a variety of contexts to identify premium decision-making options.
Verified Answer
AS
Ahmad SobohJun 05, 2024
Final Answer :
C
Explanation :
When marginal benefit is greater than marginal cost, it means that there is still room for more benefits to be gained from the activity compared to the costs incurred. Therefore, it would be optimal to do more of the activity to maximize the net benefits.
Learning Objectives
- Execute marginal analysis in a variety of contexts to identify premium decision-making options.
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