The Point That Each Glass of Lemonade Consumed on a Hot

question 243

Multiple Choice

The point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle of

• A) total benefits.
• B) increasing marginal cost.
• C) decreasing marginal benefit.
• D) increasing opportunity cost.
• E) decreasing marginal price.

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Definitions:

Maximum Total Number

The highest possible aggregate count or quantity of a particular item or entity within a defined context.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Point B

A specific position or location on a graph or diagram, used often in economic models to denote a particular outcome or situation.

Point A

A specific position or location often referenced in economic models or graphs to illustrate a particular scenario or outcome.