Decisions made about quantities are:
A)the same as making either/or decisions.
B)best made when comparing prices and costs.
C)best made using the marginal principle.
D)optimal when costs equal benefits.

Question

Quizplus · Accepted Answer

Decisions about quantities are best made using the marginal principle, which involves comparing the additional costs and benefits of each incremental unit. This ensures that resources are allocated efficiently and optimally, resulting in the greatest overall benefit. Comparing prices and costs can be helpful in this process, but the marginal principle is the most effective method for making quantity decisions.

Decisions Made About Quantities Are