The marginal principle asserts that, in general, the net benefit is maximized when
A. total benefit will be equal to total cost.
B. Average benefit will be equal to average cost.
C. Marginal benefit will be equal to average cost.
D. Average cost will be above total cost but below average benefit.
Answer:C
The marginal principle asserts that, in general, the net benefit is maximized when
A. total benefit will be equal to total cost. B. Average benefit will be equal to average cost. C. Marginal benefit will be equal to average cost. D. Average cost will be above total cost but below average benefit.