The Marginal Benefit of Each Additional Unit of a Good

question 117

Multiple Choice

The marginal benefit of each additional unit of a good consumed

• A) increases as more is consumed.
• B) is always equal to its marginal cost.
• C) decreases as more is consumed.
• D) will maximize consumer surplus.
• E) is equal to the deadweight loss if the unit of the good is not produced.

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Definitions:

Bad Decision

A choice or judgment that results in undesired outcomes, often based on faulty reasoning, insufficient information, or emotional biases.

Groupthink

A phenomenon where the desire for harmony or conformity in a decision-making group leads to an incorrect or deviant decision-making outcome.

Highly Cohesive

Refers to a group that exhibits strong bonds and unity among its members, often resulting in high levels of solidarity and loyalty.

Little or No Pressure

A situation where there are minimal external forces compelling an individual to act in a particular manner, often leading to a more authentic choice or action.