Question

Economists believe that an activity should be continued up to the point where

A. the marginal benefit from the activity is equal to the marginal cost.
B. the marginal benefit from the activity is less than the marginal cost.
C. the marginal benefit from the activity plus the marginal cost equals zero.
D. the marginal benefit from the activity is greater than the marginal cost.

Answer 1

Idk the answer to that I’m sorry

Answer 2

Answer:

A. the marginal benefit from the activity is equal to the marginal cost.

Explanation:

This is called an optimal decision. An optimal decision is the best decision option to take that leads to at least as good a known or expected outcome as all other available decision options. This occurs when marginal benefit equals the marginal cost.