The cost-benefit principle states that a consumer will be better off to follow a particular course of action,only if the
A) total benefits increase.
B) total costs decrease.
C) total costs remain unchanged.
D) extra benefits from taking the action are at least equal to the extra costs.
E) total benefits do not decreasE.

Question

Quizplus · Accepted Answer

The cost-benefit principle states that a consumer will be better off to follow a particular course of action, only if the extra benefits from taking the action are at least equal to the extra costs. Therefore, option D is the correct choice as it represents the principle accurately.

The Cost-Benefit Principle States That a Consumer Will Be Better