Excess Benefit Is Defined As

question 74

Multiple Choice

Excess benefit is defined as:

• A)the difference between marginal cost and marginal benefit for the last unit of an item produced and consumed
• B)the total difference between marginal cost and marginal benefit for all units of an item produced and consumed
• C)the total difference between marginal benefit and marginal cost for all units of an item produced and consumed
• D)the difference between marginal benefit and marginal cost for the last unit of an item produced and consumed
• E)the excess of total utility over total fixed cost for a particular product

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Definitions:

Purely Competitive Markets

Markets characterized by many buyers and sellers, homogeneous products, and no single participant having market control.

Government Action

Measures or initiatives undertaken by the governmental bodies to address societal, economic, or international issues.

Large Profit

A significantly high net income resulting from the difference between revenue and expenses.

Competitive Market Economy

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which each firm is a price taker.