The Marginal Benefit from Buying a Particular Unit of a Good

question 298

Multiple Choice

The marginal benefit from buying a particular unit of a good

• A) is the amount paid for the unit plus the consumer surplus of the unit.
• B) increases as market price increases.
• C) is the difference between the amount paid for the unit and the market price of the unit.
• D) is the difference between the total benefit of the unit and the marginal cost of producing that unit.
• E) None of the above answers is correct.

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Definitions:

Producing

The act of creating goods or services through the combination of labor, materials, and technology.

Comparative Advantage

The ability of an individual, firm, or country to produce a particular good or service at a lower opportunity cost than others.

Production Possibilities

The various combinations of goods and services that an economy can produce given its available resources and technology.