Question

In marginal analysis, when comparing costs and benefits, an optimal choice is found when ______. (Note: MB = marginal benefit, MC = marginal cost, TB = total benefit, and TC = total cost.) Select the correct answer below:
a. MB≥MC
b. MB c. TB=TC
d. TB>TC

Answer 1

Answer:

In marginal analysis, when comparing costs and benefits, an optimal choice is found when MB≥MC

Explanation:

As per  marginal analysis, optimal decision-making involves taking actions when the marginal benefit exceeds the marginal cost.(i.e MB>=MC)

Marginal cost can be defined as the change in the Total cost when producing an additional unit of output.

so the answer is (a) MB≥MC