If the Total Benefits of Watching 1, 2, and 3

question 125

Multiple Choice

If the total benefits of watching 1, 2, and 3 baseball games on TV are 100, 120, and 125 respectively, then the marginal benefits of watching 1, 2 and 3 baseball games on TV are:

• A) 100,120, and 125 respectively.
• B) 100, 20, and 5 respectively.
• C) 100, 609, and 41.67 respectively.
• D) 100, 240, and 375 respectively.

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Definitions:

Price-Taker Firm

A company that must accept the prevailing prices in the market of its products because its own activity does not affect market prices.

Short-Run Losses

Financial deficits that occur within a brief period and are typically seen as part of the normal business cycle or due to temporary challenges.

Fixed Cost

Expenses that do not change with the level of production or output within a certain range or period.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor.