According to the marginal principle,a rational individual should not undertake an economic activity if the:
A)marginal benefit exceeds marginal cost.
B)marginal benefit is less than marginal cost.
C)marginal benefit equals marginal cost.
D)total benefit equals total cost.

Question

Quizplus · Accepted Answer

The marginal principle states that a rational individual should only undertake an economic activity if the marginal benefit is greater than or equal to the marginal cost. Therefore, if the marginal benefit is less than the marginal cost, the individual should not undertake the activity. Answer B correctly reflects this principle.

According to the Marginal Principle,a Rational Individual Should Not Undertake