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:

Cash Inflows

The money received by a business from its operational, investment, and financing activities.

Profitability Index

A financial measure that assesses an investment's attractiveness, determined by dividing the present value of future cash flows by the initial investment amount.

Initial Investment

The initial amount of money that is invested in a project or venture at the beginning.

Salvage Value

The predicted end-of-life value of an asset once its period of usability concludes.