The Marginal Benefit of a Public Good ________ as More

question 93

Multiple Choice

The marginal benefit of a public good ________ as more of the good is produced.

• A) increases
• B) decreases
• C) stays the same
• D) None of the above is correct because the marginal benefit could increase, decrease, or not change depending on whether the marginal cost increases, decreases, or does not change as more is produced.
• E) None of the above is correct because the marginal benefit could increase, decrease, or not change depending on whether more, fewer, or the same number of people consume the good as more is produced.

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Definitions:

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, after deducting any expected costs of disposal.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Depreciation Rate

The percentage rate at which an asset decreases in value over a specific period, often used for tax and accounting purposes.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life.