In order to maximize net benefits,the managerial control variable should be used up to the point where:
A) total costs equal total benefits.
B) average costs equal marginal benefits.
C) average benefits equal marginal costs.
D) net marginal benefits equal zero.

Question

Quizplus · Accepted Answer

To maximize net benefits, the managerial control variable should be adjusted until the net marginal benefits equal zero. This means that the point where the additional benefits from using one more unit of the variable just equal the additional costs of that unit is the optimal level of use.

In Order to Maximize Net Benefits,the Managerial Control Variable Should