A person will continue to pursue an activity until his or her marginal ________ equals his or her marginal ________ cost.

Question

Quizplus · Accepted Answer

This statement describes the economic principle of marginal analysis, which states that people will continue to pursue an activity as long as the marginal benefit they receive is greater than the marginal cost. In this case, the marginal benefit is the additional benefit received from engaging in the activity, while the marginal cost is the additional cost incurred from engaging in the activity. The answer choice that best reflects this principle is D, where the marginal benefit is compared to the private (or individual) cost.

A Person Will Continue to Pursue an Activity Until His