Answer:
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.
