-In the Table Above, the Marginal Benefit of the 4

question 297

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Television } \\\text { sets } \\\text { (millions } \\\text { per year) }\end{array} & \begin{array} { l } \text { Willingness to } \\\text { pay } \\\text { (computers } \\\text { per television } \\\text { set) }\end{array} \\\hline 1 & 2.5 \\\hline 2 & 2.0 \\\hline 3 & 1.5 \\\hline 4 & 1.0 \\\hline 5 & 0.5 \\\hline\end{array}$$
-In the table above, the marginal benefit of the 4 millionth television set is

• A) 1.0 computer per television set.
• B) 0.25 computers per television set.
• C) 0.5 computers per television set.
• D) negative 0.5 computers per television set.

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Definitions:

Equity

The value of an owner's interest in a property or business, determined by subtracting liabilities from assets.

Income Ratios

Financial metrics that compare different components of a company's income statement, such as profit margins, to assess its financial performance.

Capital Balances

The amount of money that owners have invested in a company, not including any profits or losses.

Bonus

Compensation to management and other personnel, based on factors such as increased sales or the amount of net income.