ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A marginal cost is an incremental increase in the expense a company incurs to produce one additional unit of something.

Detailed explanation-2: -A marginal benefit is a maximum amount a consumer is willing to pay for an additional good or service. It is also the additional satisfaction or utility that a consumer receives when the additional good or service is purchased.

Detailed explanation-3: -If marginal benefit exceeds marginal cost, then the project is too modest, and could be increased thereby increasing the net benefit to society. If the marginal cost exceeds the marginal benefit, then the project will decrease the net benefit to society and should be decreased in scope.

Detailed explanation-4: -A marginal change is a small incremental adjustment to an existing plan of action. true. An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of the activity.

Detailed explanation-5: -The opportunity cost of a choice is the value of the best alternative given up. Choices involve trading off the expected value of one opportunity against the expected value of its best alternative. The evaluation of choices and opportunity costs is subjective; such evaluations differ across individuals and societies.