The cost-benefit principle indicates that an action should be taken:

Question

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The cost-benefit principle states that an action should be taken if the extra benefit is greater than or equal to the extra costs. This means that the benefits gained from taking an action should at least equal the costs incurred by taking the action, and ideally should exceed them. Options A, B, and C do not take into account the incremental costs and benefits of taking an action, and therefore are not as accurate or useful for decision-making. Option D is the best choice as it focuses on the incremental costs and benefits of taking an action.

The Cost-Benefit Principle Indicates That an Action Should Be Taken