According to the Optimal Output Rule, If the Marginal Benefit

question 194

Essay

According to the optimal output rule, if the marginal benefit is:
A.more than the marginal cost, an activity should be increased.
B.less than the marginal cost, an activity should be increased.
C.equal to the marginal cost, an activity should be increased.
D.more than the marginal cost, net benefit is maximized.

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Definitions:

Indebtedness

The state of owing money or being obliged to repay a monetary loan.

One-Time Customer

A consumer who purchases goods or services from a business only once.

Variable Cost

Costs that vary directly with the level of production or with the volume of services provided.

Sales Price

The final amount of money a customer pays for a product or service, including any discounts or adjustments.