Eve and Her Three College Friends Enjoy Perfumes

question 42

Multiple Choice

Eve and her three college friends enjoy perfumes. As a special gift to each of them last holiday season, she found a way to make scented candles with each friend's favorite perfume scent. The three friends loved her gift idea and encouraged Eve to create more and sell them online. Recently, she is filling orders from her website, and turning a profit. Eve is proof that:

• A) me-too businesses work.
• B) when you successfully fill a market need, you can make money.
• C) the Internet is a way to distribute just about anything.
• D) the cost of supplies to make candles is relatively cheap.

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Definitions:

Marginal Benefit

The supplementary enjoyment or advantage gained by consuming another unit of a good or service.

Marginal Social Benefit

The additional benefit received by society as a whole from the production or consumption of one more unit of a good.

Marginal Social Benefit

The additional gain to society as a whole from an additional unit of a good or service, considering both private benefits and externalities.

Marginal Benefit Curve

The Marginal Benefit Curve is a graphical representation showing how the benefit or utility from consuming each additional unit of a good decreases as more units are consumed.