D. first Economists believe that an activity should be continued up to the point where A. the marginal benefit from the activity is less than the marginal cost. B. the marginal benefit from the activity is equal to the marginal cost. C. the marginal benefit from the activity plus the marginal cost equals zero. D. the marginal benefit from the activity is greater than the marginal cost.
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Economists emphasize the optimal decision-making point, known as "equilibrium," where resources are allocated most efficiently. This is the juncture where the additional benefit gained from one more unit of an activity matches exactly with what it costs to produce that unit. If you're generating more value than the resources you're consuming, you're likely doing something right! In real-world application, think of it like throwing a party. You want to keep inviting friends as long as they add fun (marginal benefit) that surpasses the costs (snacks, drinks, space). If inviting that last friend means you run out of chips without any increase in enjoyment, it’s time to call it a day!