Fill in the blanks in the following statement: If marginal benefit exceeds marginal cost, then increasing the
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Fill in the blanks in the following statement:
If marginal benefit exceeds marginal cost, then increasing the level of activity by one unit___________ (increases, decreases)___________ (total, marginal, net) benefit by more than it___________ (increases, decreases)___________ (total, marginal) cost. Therefore,___________ (increasing, decreasing) the level of activity by one unit must increase net benefit. The manager should continue to___________ (increase, decrease) the level of activity until marginal benefit and marginal cost are___________ (zero, equal).
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Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice
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