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:

Good

A tangible product that satisfies human wants or needs and can be transferred or traded.

Sellers

Sellers refer to individuals or entities that offer goods or services for sale to consumers or other businesses in the market.

Buyers

Participants in the market who purchase goods or services for consumption or investment.

Tax

A required payment to a governmental authority, derived from income, property, sales, and other sources, used to fund public services and obligations.