For most economic decisions, an economic agent should continue doing any activity as long as the marginal benefits from persisting in that activity are _______________ or equal to the marginal _________.
A) greater than, cost
B) less than, cost
C) less than, benefits

Question

Quizplus · Accepted Answer

An economic agent should continue doing any activity as long as the marginal benefits from persisting in that activity are greater than or equal to the marginal cost. This means that the benefits of the activity should exceed the costs incurred. Otherwise, it is not economically rational to continue with the activity.

For Most Economic Decisions, an Economic Agent Should Continue Doing