2 . Use the following information to answer the question. Total Cost Level of activity (units) 1 2 3. 4 NO LOCO 6 7 9 13 18 20 Total Benefit ($) 13 21 26 30 32 32 According to the cost-benefit principle, what level of activity should be chosen? (a) 1 unit. (b) 3 units. 4 units. 5 units. 1. A rational decision maker will choose to act only if: (a) (b) (c) the average cost of an action is less than the average benefit of that action. the average benefit of an action is no more than the total cost of that action. the long run benefit of an action is at least as great as the short run cost of that action. the marginal benefit of an action is at least as great as the marginal cost of that action. (d)