Marginal analysis involves undertaking an activity A) until its marginal costs start declining. B) only when its marginal benefits are positive. C) only if its marginal costs are greater than its marginal benefits. D) until its marginal benefits equal marginal costs.

D) until its marginal benefits equal marginal costs.

Explanation:

Marginal analysis is the study of costs and benefits associated with the production of one more unit of a product. It compares the benefits associated with producing an extra unit against the cost of that unit. Marginal analysis is, therefore, an examination of marginal cost and marginal benefits.

Economists advocate for a continuation of production or selling activities until the point where marginal costs match marginal benefits.  A firm will enjoy economies of scale even if the additional costs equal additional benefits. When the marginal costs exceed marginal benefits, the business is likely to incur losses.

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