Economists reason that the optimal decision is to continue any activity up to the point where the
A)marginal benefit is zero.
B)marginal benefit is greater than the marginal cost.
C)marginal cost is zero.
D)marginal benefit equals the marginal cost.

Question

Quizplus · Accepted Answer

Economists reason that the optimal decision is to continue any activity up to the point where the marginal benefit equals the marginal cost. This means that the additional benefit gained from continuing the activity is equal to the additional cost required to continue it, leading to an efficient allocation of resources. Therefore, D is the best choice.

Economists Reason That the Optimal Decision Is to Continue Any