Question

The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity is known as the principle of opportunity cost. spillover principle. marginal principle. principle of diminishing returns.

Answer 1

Answer:

Marginal principle

Explanation:

Marginal principle is the principle that states that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity. Marginal principal in nutshell is study about economic decisions and effect of change in variable and its effect on other variable. Marginal principal focus on the additional variable like labor and its effect on productivity generated in terms of output. Marginal principal considers both marginal benefits and marginal cost. marginal principal is important concept in economics that direct the over all industries and their output because they consider the additional cost of resources and additional benefits from them. marginal principal takes into account the marginal cost of producing one unit and its benefits incurred in terms of productivity and output.