One maximizes the net benefit from an activity by operating at the level where:
A) total cost equals total benefit.
B) total cost is lowest, regardless of total benefit.
C) total benefit is largest, regardless of total cost.
D) the positive difference between total benefit and total cost is the greatest.

Question

Quizplus · Accepted Answer

The principle of maximizing net benefit from an activity is achieved when the positive difference between total benefit and total cost is the greatest. This ensures that the activity is not only beneficial but also efficient in terms of cost.

One Maximizes the Net Benefit from an Activity by Operating