A Change in a Marginal Benefit or Cost Will

question 36

Multiple Choice

A change in a marginal benefit or cost will

• A) increase consumption.
• B) decrease production.
• C) cause an individual to make a rational choice.
• D) increase sunk costs.
• E) change incentives.

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Definitions:

Insurance Costs

Expenses incurred by individuals or companies for purchasing insurance coverage, which offers financial protection against losses.

Constructing a Building

The process of planning, designing, and overseeing the construction of a building, considered a capital investment for a business.

Parking Lot

An area designated for the parking of vehicles, commonly found adjacent to buildings or in urban areas.

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, or equipment.