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Question
multiple choice question when the marginal benefit of an activity equals the ______, there is no incentive to either increase or decrease the level of the activity performed. marginal revenue average cost marginal cost average revenue
This is a core principle in decision-making: when the additional benefit (marginal benefit) of an activity equals the additional cost (marginal cost) of that activity, the optimal level of the activity is reached. Any increase would mean marginal cost exceeds marginal benefit (reducing net gain), and any decrease would mean marginal benefit exceeds marginal cost (missing out on net gain), so there is no incentive to change the activity level.
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O marginal cost