If the Marginal Cost of Treating an Illness Is Zero,the

question 45

Multiple Choice

If the marginal cost of treating an illness is zero,the optimal amount of treatment to receive is the amount

• A)for which the marginal benefit is zero.
• B)that cures the illness.
• C)for which average benefit is zero.
• D)for which the total benefit is zero.

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Definitions:

Market Price Method

A valuation method for inventory or assets based on current market prices.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Premium Wheat

High-quality wheat that meets specific standards and is sold at a price above regular or standard wheat.

Realized Gross Profit

The portion of profit earned from goods that have been sold, reflecting actual gains rather than estimated.