If a manager chooses the amount of an action that sets the marginal benefit of the action equal to its marginal cost, then i. all the units for which the marginal benefit exceed the marginal cost are undertaken. ii. none of the units for which the marginal benefit is less than the marginal cost are undertaken. A. Only ii is correct. B. Only i is correct. C. Both i and ii are correct. D. Neither i nor ii are correct.

If a manager chooses the amount of an action that sets the marginal benefit of the action equal to its marginal cost, then i. all the units for which the marginal benefit exceed the marginal cost are undertaken. ii. none of the units for which the marginal benefit is less than the marginal cost are undertaken. A. Only ii is correct. B. Only i is correct. C. Both i and ii are correct. D. Neither i nor ii are correct.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 3SQ

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Question

If a manager chooses the amount of an action that sets the marginal benefit of the action equal to its marginal cost, then

i. all the units for which the marginal benefit exceed the marginal cost are undertaken.

ii. none of the units for which the marginal benefit is less than the marginal cost are undertaken.

Only ii is correct.

Only i is correct.

Both i and ii are correct.

Neither i nor ii are correct.

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