According to the No Marginal Improvement principle,when searching for best solutions,we can limit our attention to activity levels at which
A) MB = MC or it is impossible to both increase and decrease the activity level
B) MB = MC and it is impossible to both increase and decrease the activity level
C) MB = MC and it is possible to both increase and decrease the activity level
D) MB = MC and it is only possible to increase the activity level

Question

Quizplus · Accepted Answer

The No Marginal Improvement principle suggests that optimal decisions occur where the marginal benefit (MB) equals the marginal cost (MC) or at points where it is not possible to adjust the activity level in either direction to improve the outcome. This encompasses situations where further adjustments are not feasible, capturing the essence of optimizing behavior under constraints.

According to the No Marginal Improvement Principle,when Searching for Best