QuestionAugust 10, 2025

9. Whenever MBlt MC the decision maker should do __ of the activity. A) Less B) the same amount C) More D) None

9. Whenever MBlt MC the decision maker should do __ of the activity. A) Less B) the same amount C) More D) None
9. Whenever MBlt MC the decision maker should do __ of the activity.
A) Less
B) the same amount
C) More
D) None

Solution
4.2(392 votes)

Answer

A) Less Explanation 1. Understand Marginal Benefit and Cost When MB < MC, the marginal cost of an additional unit is greater than the marginal benefit. 2. Decision Making Based on MB and MC To maximize net benefit, reduce the activity when MB < MC.

Explanation

1. Understand Marginal Benefit and Cost<br /> When $MB < MC$, the marginal cost of an additional unit is greater than the marginal benefit.<br />2. Decision Making Based on MB and MC<br /> To maximize net benefit, reduce the activity when $MB < MC$.
Click to rate:

Similar Questions