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In General,when Marginal Benefit Is Greater Than Marginal Cost,the Decision

question 122

Multiple Choice

In general,when marginal benefit is greater than marginal cost,the decision maker should do _____ of the activity.


Definitions:

Net Income

The amount of profit left over after all expenses, taxes, and costs have been subtracted from total revenue.

Sales

The total revenue a company generates from selling goods or services before any expenses are subtracted.

Profit Margin

A measure of profitability calculated as net income divided by revenue, expressed as a percentage, indicating the portion of each dollar of revenue that results in net income.

Gross Profit Margin

A financial metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its production costs.

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