When using the cost-benefit principle, a seller has to

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When using the cost-benefit principle, a seller has to compare the marginal cost of producing an item to the price it gets for that item in the market. This helps the seller to determine whether it is profitable to produce or sell the item, and how much of the item to produce or sell. Focusing on the opportunity cost (B) is important, but it is not the main focus of the cost-benefit principle. Considering the choices made by other sellers in the market (C) is important for understanding market dynamics, but it is not a direct application of the cost-benefit principle. Deciding whether to supply one more unit of the item (A) is a decision that can be informed by the cost-benefit principle, but it is not the core application of this principle.

When Using the Cost-Benefit Principle, a Seller Has to