The price equals marginal cost rule for profit maximization is a specific example of which core principle?

Question

Quizplus · Accepted Answer

According to the Cost-Benefit Principle, a firm should produce another unit of output as long as the extra benefit of producing another unit is greater than the extra cost. This is just another way of saying that the firm should increase output whenever price is greater than marginal cost (and it should stop when price is equal to marginal cost).

The Price Equals Marginal Cost Rule for Profit Maximization Is