A Economics: Studying Choice In a World of Scarcity a The Cost-Benefit Principle o An individual (or a firm or a society) should take an action if, and only if, the extra benefits from taking the action are at least as great as the extra costs Chapter 1: Thinking Like an Economist Slide 9MB MC Chapter 1: Thinking Like an Economist Slide 9 Economics: Studying Choice In a World of Scarcity ◼ The Cost-Benefit Principle ⚫ An individual (or a firm or a society) should take an action if, and only if, the extra benefits from taking the action are at least as great as the extra costs