When the choice variable is a continuous variable,the decision rule for an unconstrained maximization problem is: A)If MB MC,increase the activity. B)If MB

Question

When the choice variable is a continuous variable,the decision rule for an unconstrained maximization problem is:
A)If MB > MC,increase the activity.
B)If MB < MC,decrease the activity.
C)Choose the activity so that MB = MC.
D)all of the above
E)none of the above

Quizplus · Accepted Answer

The decision rule for an unconstrained maximization problem when the choice variable is continuous involves adjusting the level of activity to the point where marginal benefit (MB) equals marginal cost (MC). This encompasses increasing the activity when MB > MC, decreasing it when MB < MC, and choosing the level where MB = MC, making all the options correct.

When the Choice Variable Is a Continuous Variable,the Decision Rule