The Marginal Social Benefit Is the Sum of the Benefit

question 397

True/False

The marginal social benefit is the sum of the benefit enjoyed by the consumer of an additional unit of a good or service plus the marginal benefit enjoyed by others.

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Definitions:

Distribution

In finance, the way returns are spread out over time or the manner in which assets are allocated within an investment portfolio.

Bell Curve

A graphical representation of a normal distribution, characterized by a symmetrical bell-shaped curve where most occurrences take place around the mean.

Normal Distribution Function

A statistical function that describes how the values of a variable are distributed, with most observations clustering around the mean and fewer observed in the tails.

Cumulative Normal Function

A statistical function that indicates the probability that a random observation that is drawn from a normal distribution falls within a certain range of values.