In Economics, Maximization of the Total Net Benefit of an Activity

question 191

Essay

In economics, maximization of the total net benefit of an activity occurs when:
A.MB = MC.
B.MB > MC.
C.MB < MC.
D.MB approaches MC.

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Definitions:

Original Issue Discount

The difference between the face value of a bond and its offering price when the bond is issued at a lower price.

Semiannual Coupon

A fixed income security feature that represents the payment of interest to bondholders twice a year.

Par Value

The nominal or face value assigned to a security by the issuer, which may differ from its market value.

Semiannual Coupon

A bond or other fixed-income security that pays interest to the holder every six months.