At the 50th Unit of Action, the Marginal Benefit Is

question 71

Multiple Choice

At the 50th unit of action, the marginal benefit is equal to $20 and the marginal cost is equal to $25. Which of the following is true?

• A)The 50th unit of action should not be undertaken.
• B)The 50th unit of action should be undertaken.
• C)The 50th unit of action minimizes total costs.
• D)The 50th unit of action maximizes total gains (total profits).

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Definitions:

Trade Credit

A business arrangement where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date, often used to finance short-term operational needs.

Consumer Credit

A type of credit granted to consumers to finance personal purchases.

Retail Credit

An arrangement where retailers offer direct credit facilities to their customers for the purchase of goods and services.

Work-in-progress

Refers to the intermediate goods or partially finished goods that are in the process of production.