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

Name: Individuals will only pursue an activity if: A)E(M B) E(M C). B)E(M B) = E(M C). C)E(M B) > E(M C). D)E(M B) < E(M
Brand: Quizplus
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Question

Individuals will only pursue an activity if:
A)​E(M
B) E(M
C). 
B)​E(M
B) = E(M
C). 
C)​E(M
B) > E(M
C). 
D)​E(M
B) < E(M

Quizplus · Accepted Answer

Individuals will pursue an activity only if the expected marginal benefit (E(MB)) is greater than the expected marginal cost (E(MC)). Therefore, the correct choice is C where E(MB) > E(MC).

Individuals Will Only Pursue an Activity If