The Benefit from an Additional Unit of a Good or Service

question 157

Multiple Choice

The benefit from an additional unit of a good or service that people other than the consumer of that good or service receives is the

• A) marginal private benefit.
• B) marginal external benefit.
• C) marginal social benefit.
• D) opportunity cost.

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Definitions:

Marginal Revenue Product Curve

A graphical representation showing how the extra revenue generated from employing one more unit of a resource changes as more of the resource is employed.

Demand Curve

A visual map indicating how consumer demand for a product varies with changes in its price.

Labor

The work performed by humans which is often measured in terms of hours or productivity and is a fundamental factor of production.

Market Wage

The prevailing pay rate for work of a given nature in a specific market or industry.