An activity's marginal benefit is ________ at the optimal quantity.
A) zero
B) greater than zero
C) less than zero
D) equal to the marginal cost
E) greater than the marginal cost

Question

Quizplus · Accepted Answer

At the optimal quantity of an activity, the marginal benefit is equal to the marginal cost. This equilibrium point ensures that resources are allocated efficiently, maximizing the net benefit of the activity.

An Activity's Marginal Benefit Is ________ at the Optimal Quantity