Arrange the steps of conducting marginal analysis to determine optimal output: A) Compare marginal benefit and marginal cost, B) Identify the level of output, C) Make production decisions based on equality of benefits and costs, D) Assess the impact of changes in output on costs and benefits.

First you look at the extra benefit you get from producing one more unit and compare it to the extra cost you pay. Other options are incorrect because Starting with output before comparing costs and benefits mixes the cause and effect; Choosing to make decisions before knowing how changes affect costs and benefits is like buying a gadget without checking if it fits your budget.