According to the marginal principle,a rational individual should NOT undertake an economic activity if 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

According to the marginal principle, a rational individual should undertake an economic activity only if the marginal benefit is greater than the marginal cost. Therefore, if the marginal benefit is less than the marginal cost, it would not be rational to undertake the activity. Option B is the only one that fits this criterion.

According to the Marginal Principle,a Rational Individual Should NOT Undertake