Marginal benefit is defined as
a. the net gain from a particular level of an activity.
b. the additional benefit gained from the last unit of an activity.
c. the difference between total benefits and total costs of a particular level of an activity.
d. the difference between variable costs and fixed costs.
b. the additional benefit gained from the last unit of an activity.
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An accurate demand curve can be derived by examining the quantities of a good that are sold over time as the price varies
a. True b. False Indicate whether the statement is true or false
Suppose that the price of a donut is $1 each. Lorena is willing to pay $2 for the first donut, Ricky is willing to pay $1.80 for the second donut, Jennifer is willing to pay $1.50 for the third donut, and Betty is willing to pay $1.20 for the fourth donut. In equilibrium, what is the total consumer surplus from the consumption of donuts?
A. $2.40 B. $2.50 C. $3.50 D. $3.60
A plot of points representing the rate of inflation and the unemployment for the United States since 1953 reveals that
A. there is an inverse relationship between the two variables. B. there is a positive relationship between the two variables. C. there does not appear to be any trade-off between the two variables. D. none of these.
If a decrease in income results in a decrease in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.
A. a normal good; positive B. a normal good, negative C. an inferior good; positive D. an inferior good; negative