Question

If the marginal benefit of an activity is greater than the marginal cost of an activity, then you are better off _____.

not doing the activity
doing less of the activity
doing more of the activity

Answer 1

Doing more of the activity, this is as we give up things as cost in order to gave benefits.

Answer 2

The correct answer is "doing more of the activity".

Step-by-step explanation:

Whenever the marginal benefit of a certain activity is greater than its marginal cost, the best decision is to do more of the activity. This way, we would be making the most of the resources and maximizing the company's profits. When the marginal benefit is equal to the marginal cost, at that point we should stop increasing the activity.

Have a nice day!