Suppose that the marginal benefit of an activity is less than the marginal cost,then:
A) the net benefit would be increased by reducing the amount of the activity.
B) the net benefit would be decreased by reducing the amount of the activity.
C) the net benefit would be increased by increasing the amount of the activity.
D) there can be no marginal improvement by changing the amount of the activity.

Question

Quizplus · Accepted Answer

If the marginal benefit of an activity is less than the marginal cost, it means that the additional benefit received from doing more of the activity is less than the additional cost incurred. Therefore, reducing the amount of the activity would decrease the cost but not significantly impact the benefit, leading to increased net benefit.

Suppose That the Marginal Benefit of an Activity Is Less