According to the marginal principle,a rational individual should undertake an economic activity as long as the
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 a rational individual should undertake an economic activity as long as the marginal benefit exceeds marginal cost. This implies that the individual should continue with the activity until the additional benefit they receive is greater than the additional cost incurred. Therefore, the optimal choice for a rational individual is to undertake activities where the marginal benefit exceeds marginal cost.

According to the Marginal Principle,a Rational Individual Should Undertake an Economic