According to the Marginal Decision Rule, If Marginal Benefit

question 115

Multiple Choice

According to the marginal decision rule, if marginal benefit:

• A) exceeds marginal cost, an activity should be increased.
• B) is less than marginal cost, an activity should be increased.
• C) is equal to marginal cost, an activity should be increased.
• D) exceeds marginal cost, net benefit is maximized.

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Definitions:

Producing

The process of creating goods or services.

Profit

The financial gain obtained when revenue from selling a product or service exceeds the costs of producing it.

HVAC Cooling System

A component of the Heating, Ventilation, and Air Conditioning (HVAC) technology aimed at controlling and reducing indoor temperatures through various cooling methods.

Revolutionary

Relating to or involving a drastic and significant change, especially in ideas, methods, or structure.