Asked by Marella Paine on May 28, 2024
Verified
If at a given quantity _____,the decision maker should do _____ of the activity.
A) MB < MC;that amount
B) MB < MC;less
C) MB > MC;less
D) MB > MC;none
MB < MC
A condition where the marginal benefit of producing an additional unit is less than the marginal cost of producing that unit.
Decision Maker
An individual or group responsible for making choices or judgments, particularly in a professional or organizational context.
- Implement marginal analysis in diverse contexts to establish superior decision-making strategies.
Verified Answer
KS
Karla SalasMay 30, 2024
Final Answer :
B
Explanation :
When Marginal Benefit (MB) is less than Marginal Cost (MC), it indicates that the cost of producing one more unit is higher than the benefit derived from it. Therefore, the decision maker should do less of the activity to maximize efficiency and avoid losses.
Learning Objectives
- Implement marginal analysis in diverse contexts to establish superior decision-making strategies.