ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an incentive
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the marginal cost
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the marginal benefit
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opportunity cost
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Detailed explanation-1: -Positive Benefit: Marginal benefit increases as additional units are consumed.
Detailed explanation-2: -Answer and Explanation: Marginal benefit is the benefit C. that arises from an increase in an activity. This is the increase in total benefit from a marginal increase in the activity.
Detailed explanation-3: -Marginal benefits are the maximum amount a consumer will pay for an additional good or service. A marginal benefit is also the additional satisfaction that a consumer receives when the additional good or service is purchased. The marginal benefit generally decreases as consumption increases.
Detailed explanation-4: -Marginal benefit equals marginal cost only at competitive equilibrium and means that a product is economically efficient.
Detailed explanation-5: -Understanding Marginal Benefits For example, if a customer is willing to pay $10 for a cake, the marginal benefit of consuming the cake is $10. However, the customer may be unwilling to buy an additional cake at $10 and may consider buying a second unit if the price falls to $7.