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QUESTION IMAGE

with regard to marginal thinking, an individual will do an action if ma…

Question

with regard to marginal thinking, an individual will do an action if

marginal benefit is greater than or equal to marginal cost.

the action has positive benefits.

the costs of the action are small.

the probability of success is greater than 50 percent.

Explanation:

Brief Explanations

Marginal thinking in economics (Business subfield: Economics) focuses on comparing marginal benefit (additional benefit from an action) and marginal cost (additional cost of that action). An individual undertakes an action when the marginal benefit at least covers the marginal cost (≥ marginal cost). The other options are incorrect: "positive benefits" doesn't consider costs, "small costs" ignores benefits, and "probability > 50%" is unrelated to marginal benefit - cost analysis.

Answer:

A. marginal benefit is greater than or equal to marginal cost.