Engaging in an Activity Until Marginal Benefits Equal Marginal Costs

question 27

Multiple Choice

Engaging in an activity until marginal benefits equal marginal costs is known as

• A)the diminishing marginal returns
• B)the diminishing marginal utility
• C)the marginal decision rule
• D)the marginal utility rule

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or loss.

Days' Sales Uncollected

Measures the average amount of time it takes a company to collect cash from credit sales.