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Introduction To Economicseconomics-mcqs › introduction-to-economics
Published
26 May 2019
Last updated
28 May 2026

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When the marginal benefit exceeds the marginal cost, what is the rational decision regarding the level of the activity?

Multiple choice question for Introduction To Economics. Select an option, then review the explanation below.

Choose the correct answer

Explanation

If the additional benefit gained from an activity is higher than the additional cost, it is logical to increase the activity to maximize net benefit.

Practice related questions from the same subject.

  1. 1.Which of the following factors directly influences the supply curve?
  2. 2.Under what condition is a market considered to be in equilibrium?
  3. 3.What type of relationship is depicted when a graph shows that as the values on the horizontal axis increase, the values on the vertical axis decrease?
  4. 4.Which two elements are essential to construct a straight-line graph?
  5. 5.How can a nominal value be converted into a real value?

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