Question

In order to maximize net benefits, the managerial control variable should be used up to the point where:- marginal benefits equal zero. - average benefits equal marginal costs. - total costs equal total benefits. - average costs equal marginal benefits.

Answer 1

Answer:

total costs equal total benefits.

Explanation:

Net benefit is maximized at the point at which marginal benefit equals marginal cost. The marginal decision rule is at the heart of the economic way of thinking. The rule basically says this: If the additional benefit of one more unit exceeds the extra cost, do it; if not, do not.

Answer 2

For the  net benefits to be maximized,  the managerial control variable should be used up to the point where  total costs equal total benefits.

What is Net profit ?

Net profit  can be regarded as the amount of money earn in business  after deducting all operating, interest, and tax expenses over a given period of time.

Therefore, to maximize the Net profit managerial control variable should be used up to the point where  total costs equal total benefits.

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