Which of the Following Creates an Incentive to Increase the Amount

question 109

Multiple Choice

Which of the following creates an incentive to increase the amount of an activity?

• A)an increase in the marginal cost of the activity and a decrease in the marginal benefit from the activity
• B)a decrease in the marginal cost of the activity and an increase in the marginal benefit from the activity
• C)constant marginal cost and constant marginal benefit from the activity
• D)an increase in the marginal cost of the activity and an equal increase in the marginal benefit from the activity
• E)a decrease in the marginal cost of the activity and an equal decrease in the marginal benefit from the activity

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Definitions:

Anticipatory Breach

Occurs when one party to an agreement indicates they will not fulfill their contractual obligations, allowing the other party to take legal action before the breach occurs.

Bush Pilot

A pilot who operates aircraft, often small planes, in remote and undeveloped areas, typically for the purposes of transporting goods or passengers to locations without established runways.

Remote Part

A component or aspect that is distantly or indirectly related to the main subject or event.

Breach Of Contract

The failure to perform a contract in accordance with its terms.