-According to this figure, at six units of activity this individual's marginal cost would:
A) equal marginal benefit from the activity.
B) be less than marginal benefit from the activity.
C) be greater than marginal benefit from the activity.
D) be less or greater than marginal benefit, depending on whether the activity was decreasing or increasing at the time.

Question

-According to this figure, at six units of activity this individual's marginal cost would:
A) equal marginal benefit from the activity. 
B) be less than marginal benefit from the activity. 
C) be greater than marginal benefit from the activity. 
D) be less or greater than marginal benefit, depending on whether the activity was decreasing or increasing at the time.

Quizplus · Accepted Answer

At six units of activity, the marginal cost (the cost of producing one more unit) would be greater than the marginal benefit (the benefit gained from one more unit), as typically, marginal cost increases and marginal benefit decreases with each additional unit of activity.

-According to This Figure, at Six Units of Activity This