According to the marginal-cost-marginal-benefit rule,
A)only government projects (as opposed to private projects)should be assessed by comparing marginal costs and marginal benefits.
B)the optimal project size is the one for which MB = MC.
C)the optimal project size is the one for which MB exceeds MC by the greatest amount.
D)project managers should attempt to minimize both MB and MC.

Question

Quizplus · Accepted Answer

The marginal-cost-marginal-benefit rule states that the optimal level of an activity is reached when the marginal benefit (MB) is equal to the marginal cost (MC). This principle applies broadly in economics, guiding decisions on the efficient allocation of resources.

According to the Marginal-Cost-Marginal-Benefit Rule