The optimal level of any activity is that level for which
A)total benefit is maximized.
B)marginal benefit exceeds marginal cost by the greatest possible amount.
C)total cost is minimized.
D)both a and c
E)none of the above

Question

Quizplus · Accepted Answer

The optimal level of any activity is reached when the marginal benefit equals the marginal cost, not when total benefit is maximized, marginal benefit exceeds marginal cost by the greatest amount, or total cost is minimized.

The Optimal Level of Any Activity Is That Level for Which