(Answered) is the idea that people make choices to maximize the overall benefit – or utility – of an action…

➤ How do marginal benefit and marginal cost determine decisions?
Decision-makers compare marginal benefit and marginal cost to find the optimum. They increase an activity while marginal benefit exceeds marginal cost and stop where the two equalize. That rule yields the best level of consumption or production given constraints. Firms and consumers use this marginal condition to allocate scarce resources efficiently.