The marginal principle implies that an individual should produce or consume where
A) marginal benefit exceeds marginal cost.
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 should continue to produce or consume until the marginal benefit equals the marginal cost. This is the point at which the individual is getting the most benefit for the cost they are incurring. Therefore, C is the correct answer since marginal benefit equals marginal cost.

The Marginal Principle Implies That an Individual Should Produce or Consume