In making an "either-or" decision:
A)choose the activity that results in the greater economic profit.
B)choose the activity that results in the greater accounting profit.
C)continue in an activity as long as the marginal cost is greater than the marginal benefit.
D)continue in an activity as long as the marginal cost is less than the marginal benefit.

Question

Quizplus · Accepted Answer

In an "either-or" decision, the choice should be based on the activity that results in the greater economic profit, which considers both explicit and implicit costs, providing a more comprehensive measure of profitability.

In Making an "Either-Or" Decision