If the Marginal Benefit of Consuming Another Unit of a Good

question 111

Multiple Choice

If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed

• A) no matter what.
• B) as long as the consumer can afford to pay for it.
• C) if the total benefit of the good is greater than its total cost.
• D) if the marginal benefit of the good is greater than its marginal cost.

---

Definitions:

Market Price

The ongoing market cost for the purchase or sale of a service or asset.

Net Present Values

Net Present Values is the plural form of Net Present Value, referring to the calculation that determines the sum of the present values of all future cash flows associated with an investment, less the initial investment cost.

Market-to-Book Value

A ratio used to compare a company's market value to its book value, indicating the market's perception of the value of its equity.

Cash Offer

A proposal to buy assets, including securities or real estate, using cash as the form of payment without involving financing or loans.