Individuals will only pursue an activity if: A)E(MB) ≤ E(MC). B)E(MB) = E(MC). C)E(MB) E(MC). D)E(MB)

Name: Individuals will only pursue an activity if: A)E(MB) ≤ E(MC). B)E(MB) = E(MC). C)E(MB) > E(MC). D)E(MB) < E(MC). E)E(MB) = E(MC) = 0.
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Question

Individuals will only pursue an activity if:
A)E(MB) ≤ E(MC).
B)E(MB) = E(MC).
C)E(MB) > E(MC).
D)E(MB) < E(MC).
E)E(MB) = E(MC) = 0.

Quizplus · Accepted Answer

Individuals will only pursue an activity if the expected marginal benefits (E(MB)) are greater than the expected marginal costs (E(MC)). This is because the perceived gain from the activity must outweigh the perceived costs for it to be considered worthwhile.

Individuals Will Only Pursue an Activity If