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Maintain level of activity

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1. If total cost is falling faster than total benefit is falling, the activity should be decreased. Why?

2. If total benefit is rising at the same rate that total cost is rising, the decision maker should maintain this level of activity since it is the optimal level Why?

3. If net benefit is rising, then total benefit must be rising at a rate greater than the rate at which total cost is rising Why?

Reference no: EM132240766

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