Recall the Application About the Best Speed at Which to Sail

question 98

Multiple Choice

Recall the Application about the best speed at which to sail an ocean cargo ship to answer the following question(s) .
-Based on the Application,a ship captain will decide to sail a ship slower if

• A) the marginal benefit of a faster sail is less than the marginal cost.
• B) the marginal benefit of a faster sail is more than the marginal cost.
• C) the marginal benefit of a faster sail is equal than the marginal cost.
• D) the marginal benefit of a faster sail is positive.

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Definitions:

Marginal Product

The addition to total output due to the use of one more unit of a variable input, keeping all other inputs constant.

Profit-maximizing

The process or strategy of adjusting production and prices to achieve the highest possible profit, taking into account costs and market demand.

Marginal Product

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee, especially to manual or unskilled workers.