What is the relationship between the marginal benefit, value, and demand?
What will be an ideal response?
The value of one more unit of a good is its marginal benefit. The marginal benefit of a good or service is measured by the maximum amount that consumers are willing to pay for one more unit of a good or service. The demand curve shows the maximum consumers are willing to pay for each additional unit, so the demand curve is the same as the marginal benefit curve.
You might also like to view...
In the absence of well-defined property rights, we would likely find
A) people with more incentives to take risks. B) people with less incentives to take risks. C) higher economic growth rates. D) increases in investment activity.
Economic growth is measured by the annual percentage increase in a nation's level of:
a. nominal GDP. b. real GDP. c. real GDP deflator. d. economic indicators.
Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour. The opportunity cost to Henry of making a bird house is 1/3 bird feeder
a. True b. False Indicate whether the statement is true or false
Country A has real GDP per person of 100,000 while country B has real GDP per person of 200,000 . All else constant, country A will eventually have a higher standard of living than country B if
a. the level of saving per person is 10,000 in country A and 10,000 in country B. b. the level of saving per person is 12,000 in country A and 15,000 in country B. c. Both of the above are correct. d. None of the above are correct.