According to the marginal principle, a rational individual should undertake an economic activity as long as the:
A) marginal benefit equals marginal cost.
B) total benefit equals total cost.
C) marginal benefit exceeds marginal cost.
D) marginal benefit is less than marginal cost.

Question

Quizplus · Accepted Answer

The marginal principle states that a rational individual should undertake an economic activity as long as the marginal benefit exceeds the marginal cost. This means that the individual will continue the activity as long as the additional benefit they receive from doing one more unit of the activity is greater than the additional cost of doing that extra unit. Only choice C reflects this principle.

According to the Marginal Principle, a Rational Individual Should Undertake