Marginal Cost Is Greater Than Marginal Benefit at the Current

question 1

Multiple Choice

marginal cost is greater than marginal benefit at the current activity level,the decision maker can increase net benefit by decreasing the activity because

• A)total benefit will rise by more than total cost will rise.
• B)marginal cost is rising faster than marginal benefit is falling.
• C)net benefit is upward sloping at this point.
• D)total cost will fall by more than total benefit will fall.

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