According to the marginal principle,an individual will do best by producing or consuming where
A) marginal benefit exceeds total benefits.
B) marginal benefit is less than marginal cost.
C) marginal benefit equals marginal cost.
D) total benefit equals total cost.

Question

Quizplus · Accepted Answer

The marginal principle states that an individual will do best by producing or consuming where marginal benefit equals marginal cost. This is because at this point, the individual is getting the most benefit from the last unit consumed or produced, and the cost of producing or consuming that unit is equal to the benefit received. Therefore, the individual is maximizing their overall benefit.

According to the Marginal Principle,an Individual Will Do Best by Producing