Economists Reason That the Optimal Decision Is to Continue Any

question 89

Multiple Choice

Economists reason that the optimal decision is to continue any activity up to the point where the

• A)marginal benefit is zero.
• B)marginal benefit is greater than the marginal cost.
• C)marginal cost is zero.
• D)marginal benefit equals the marginal cost.

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Definitions:

Top Management

The highest-ranking executives in an organization, responsible for setting strategic goals and ensuring their execution.

Stakeholder Representatives

Individuals who act on behalf of specific groups interested in or affected by the outcome of a project or decision.

Corporate Governance

The structures, policies, and practices in place within an organization to ensure accountability, fairness, and transparency in the company's relationship with its stakeholders.

Inside Directors

Board members who are also employees, officers, or stakeholders in the company, providing them with detailed knowledge of its business operations.