Let and Find

question 28

Essay

Let
and find
and
where

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Definitions:

Marginal Benefits

The added pleasure or value that comes from the additional consumption or production of a good or service unit.

Marginal Costs

The supplementary cost involved in the production of one more unit of a product or service.

Production Possibilities Curve

A graph that shows the maximum number of possible units of two commodities that a economy can produce with available resources and technology.

Marginal Benefit

The incremental gain in happiness or usefulness obtained through consuming an extra unit of a good or service.