Multiple Choice
At the 50th unit of action, the marginal benefit is equal to $20 and the marginal cost is equal to $25. Which of the following is true?
A) The 50th unit of action should not be undertaken.
B) The 50th unit of action should be undertaken.
C) The 50th unit of action minimizes total costs.
D) The 50th unit of action maximizes total gains (total profits) .
Correct Answer:
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