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Marginal Cost Is Greater Than Marginal Benefit at the Current

Question 1

Multiple Choice

marginal cost is greater than marginal benefit at the current activity level,the decision maker can increase net benefit by decreasing the activity because


A) total benefit will rise by more than total cost will rise.
B) marginal cost is rising faster than marginal benefit is falling.
C) net benefit is upward sloping at this point.
D) total cost will fall by more than total benefit will fall.

Correct Answer:

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