Use the Graph to Answer Questions

question 2

Multiple Choice

Use the graph to answer questions
-The change in marginal benefits moving from Point A to Point B illustrates

• A)the Law of Diminishing Return.
• B)the Law of Increasing Total Cost.
• C)the Law of Diminishing Marginal Benefits.
• D)the Law of Increasing Marginal Costs.

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Definitions:

Net Payoffs

The final amount of profit or loss after all gains and costs have been accounted for in a financial transaction or decision.

Oligopolist

A firm that is part of an industry where a small number of entities dominate the market, often leading to limited competition.

Price Cuts

Reductions in the selling price of goods or services, often to attract more customers or boost sales.

Marginal Cost

The expense required to create one more unit of a product or service.