In Applying the Cost-Benefit Principle,one Should Calculate the

question 79

Multiple Choice

In applying the cost-benefit principle,one should calculate the

• A) total cost and total benefit,and choose that quantity of an activity where they are equal.
• B) average cost and average benefit,and choose that quantity of an activity where the average benefit exceeds the average cost by the greatest amount.
• C) total cost and total benefit,and choose that quantity of an activity where the total cost exceeds the total benefit by the greatest amount.
• D) marginal cost and marginal benefit,and choose that quantity of an activity where the marginal benefit at least equals the marginal cost.
• E) marginal cost,total cost,marginal benefit,and marginal cost,and choose that quantity of an activity where the marginal cost equals the total cost and the marginal benefit equals the total benefit.