If the marginal benefit of an activity is greater than its marginal cost, people are better off doing _____

Economics Dec 15, 2020

If the marginal benefit of an activity is greater than its marginal cost, people are better off doing _____ .

a. more of the activity,

b. less of the activity,

c. same amount of the activity.

Expert Solution

The correct answer to the given question is option a. more of the activity

The net benefit of an activity is ascertained by deducting the marginal cost from the marginal benefit. If the marginal benefit of an activity is greater than its marginal cost, the net benefit will be positive. Hence, one can increase the total net benefit by doing more of the activity.

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