Question: Based on the cost - benefit principle, the answer to the question, Should I produce one more unit? depends on: your other choices, the choices
Based on the costbenefit principle, the answer to the question, "Should I produce one more unit?" depends on:
your other choices, the choices others make, developments in other markets, and expectations about the future.
the opportunity cost, rather than just the outofpocket financial costs.
the next best alternative way of a production decision.
the balance of marginal benefits and marginal costs.
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