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AP® Microeconomics

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Choice: Rational Decision-making

APMICR-OROFWF

Which of the following correctly describes rational decision-making ?

A

An activity should be continued as long as the marginal benefit exceeds the marginal cost.

B

An activity should be stopped when the marginal benefit exceeds the marginal cost by the greatest amount.

C

An activity should be continued as long as the average benefit exceeds the average cost.

D

An activity should be stopped when the average benefit equals the average cost.

E

An activity should be stopped when the average benefit exceeds the average cost by the greatest amount.