To determine the quantity of any activity that will maximize net benefit, economists employ the ________ rule.
A) average decision
B) total decision
C) net decision
D) marginal decision

Question

Quizplus · Accepted Answer

The economists employ the marginal decision rule to determine the quantity of any activity that will maximize net benefit. This rule states that a rational decision-maker should take an action only if and only if the marginal benefit of the action exceeds the marginal cost. Therefore, the optimal quantity of an activity occurs at the point where the marginal benefit equals the marginal cost.

To Determine the Quantity of Any Activity That Will Maximize