Economists Believe That Optimal Decisions Are Made Up to the Point

question 21

Multiple Choice

Economists believe that optimal decisions are made up to the point where

• A) marginal benefit is zero.
• B) marginal cost is zero.
• C) marginal benefits are greater than marginal costs.
• D) marginal costs are greater than marginal benefits.
• E) marginal benefits are equal to marginal costs.

Understand the impact of variable and fixed costs on budgetary outcomes.

Apply budgeting techniques in service and manufacturing settings.

Analyze the effect of actual activity levels on budgeted amounts.

Understand the standard number of machine-hours allowed for production.

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Definitions:

Ethical Egoism

A philosophical stance asserting that actions are morally right if they benefit the individual's self-interest.

Moral Development

A process involving the evolution of an individual's understanding, values, and behaviors concerning what is right and wrong, influencing ethical decision-making.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Exchange Stage

A phase in the development of relationships, especially in the workplace, where mutual values, benefits, and commitments are established between parties.