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Given, MB = Marginal Benefit and MC = Marginal Cost

Question 8

Multiple Choice

Given, MB = Marginal benefit and MC = Marginal cost. Then, for a positive decision variable in the optimal solution, which of the following relations holds?


A) MB = MC = 0
B) MB - MC > 0
C) MB - MC = 0
D) MB - MC < 0
E) The relationship between MB and MC is indeterminate.

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