At the Optimal or Efficient Level of an Activity,the Activity's

question 37

Multiple Choice

At the optimal or efficient level of an activity,the activity's marginal benefit must

• A) be zero.
• B) be greater than zero.
• C) equal the marginal cost of the activity.
• D) exceed the marginal cost of the activity.

---

Definitions:

Raw Materials

The basic material from which a product is made, often used in manufacturing and production processes.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Variable Costs

Costs that vary directly with the level of production or output.

Fixed Costs

Expenses that do not change with the level of goods or services produced over a short period.