Suppose That the Marginal Benefit of an Activity Is Less

question 8

Multiple Choice

Suppose that the marginal benefit of an activity is less than the marginal cost,then:

• A) the net benefit would be increased by reducing the amount of the activity.
• B) the net benefit would be decreased by reducing the amount of the activity.
• C) the net benefit would be increased by increasing the amount of the activity.
• D) there can be no marginal improvement by changing the amount of the activity.

---

Definitions:

External Revenue

The income that a company generates from its primary business activities outside of its entity, excluding internal transactions.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand, and customer service.

CODM (Chief Operating Decision Maker)

An individual or group responsible for making strategic decisions regarding the allocation of resources and assessing the performance of operating segments within an organization.

Discrete Financial Information

Specific financial data or metrics that are isolated or separated from other financial information to provide targeted insight or analysis.