According to the Profit-Maximizing Principle of Marginal Analysis,if the Marginal

question 71

Multiple Choice

According to the profit-maximizing principle of marginal analysis,if the marginal benefit is _____ the marginal cost,_____.

• A)more than;an activity should be reduced
• B)less than;an activity should be reduced
• C)equal to;an activity should be reduced
• D)more than;net benefit is maximized

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Definitions:

Foreign Goods

Products or commodities that are produced in one country and then imported into another, making them external to the domestic economy.

Inventories

The quantities of goods on hand in a business at a specific time.

GDP Deflator

An economic metric that converts the current market value of all goods and services produced domestically into a figure adjusted for inflation.

Changes in Prices

Variations in the cost of goods or services over time, which can be influenced by factors like supply and demand, inflation, or market events.