An Activity's Marginal Benefit Is ________ at the Optimal Quantity

question 153

Multiple Choice

An activity's marginal benefit is ________ at the optimal quantity.

• A) zero
• B) greater than zero
• C) less than zero
• D) equal to the marginal cost
• E) greater than the marginal cost

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Definitions:

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating how much tax will be paid on any additional income earned.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, usually exempt from federal taxes and, in some cases, state and local taxes.

Corporate Bond

A type of debt security issued by a corporation to raise funds from investors, who are owed repayment of the loan plus interest.

Futures Contract

A Futures Contract is a legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.