According to the profit-maximizing principle of marginal analysis,if the marginal benefit is _____ the marginal cost,_____.

A) more than;an activity should be increased
B) less than;an activity should be reduced
C) equal to;an activity should be reduced
D) more than;net benefit is maximized

Profit-Maximizing Principle

The economic principle that firms operate to achieve the highest possible profit from their operations, by adjusting output levels, pricing, or resource usage.

Marginal Analysis

An examination of the benefits and costs of an additional unit of change in economic decisions.

Marginal Benefit

The added gratification or usefulness that an individual acquires from the consumption of an additional unit of a good or service.