If the Marginal Benefit of Consuming Another Unit of a Good

question 335

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 consumed

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

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Definitions:

Correlation

A statistical measure that indicates the extent to which two variables fluctuate together, without necessarily implying causation.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to investigate its effect on the dependent variable.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable.

Self-Reports

Direct reports or accounts from individuals about their own feelings, behaviors, or attitudes, often used in research.