Question

Economists use the word marginal to mean an extra or additional benefit or cost of a decision. An optimal decision occurs when _________

Answer 1

Answer:

B. marginal benefit equals marginal cost

Explanation:

As we know that the marginal in the economics term means that it is an extra or additional cost that could be incurred in producing an additional output

And, the optimal decision means the decision when the marginal benefit is equivalent to the marginal cost

In numerical terms,

marginal benefit = marginal cost

hence, the correct option is B.