The rule for making optimal decisions is that an activity should be increased until:
A) average costs are minimized.
B) total costs are minimized.
C) total benefits are maximized.
D) marginal benefits equal marginal costs.

Question

Quizplus · Accepted Answer

The optimal decision rule states that an activity should be increased until marginal benefits equal marginal costs, as this is the point where net benefits are maximized.

The Rule for Making Optimal Decisions Is That an Activity