The marginal decision rule as applied to regulation states that regulations:
A) should be undertaken when their marginal benefits exceed their marginal costs.
B) should be undertaken when their marginal benefits are less than their marginal costs.
C) that improve safety should be undertaken, whatever the costs.
D) should be designed to minimize the net benefit.

Question

Quizplus · Accepted Answer

The marginal decision rule states that an action or regulation should be pursued if its marginal benefit exceeds the marginal cost. Therefore, a regulation should be undertaken when the marginal benefits of the regulation exceed the marginal costs.

The Marginal Decision Rule as Applied to Regulation States That