The marginal principle asserts that, in general, when net benefit is maximized
A) total benefit will be equal to total cost.
B) average benefit will be equal to average cost.
C) marginal benefit will be equal to marginal cost.
D) average cost will be above total cost but below average benefit.

Question

Quizplus · Accepted Answer

The marginal principle suggests that the optimal decision is reached when the marginal benefit of an action equals its marginal cost. This means that the additional benefit gained from one more unit of an action is equal to the additional cost incurred from that same unit.

The Marginal Principle Asserts That, in General, When Net Benefit