Suppose That the Marginal Benefit of Having a Security Guard

question 26

Multiple Choice

Suppose that the marginal benefit of having a security guard at the airport is MB₁,at the bank is MB₂,and at the mall is MB₃.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC₂.
The marginal cost curves are upward-sloping because the first guards assigned are the guards with the lowest opportunity costs for performing this task.This is referred to as the

• A)law of demand.
• B)law of supply.
• C)law of diminishing marginal utility.
• D)low-hanging-fruit principle.

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Definitions:

Time Utility

Enhancing the value of a product or service by making it available at the most convenient time for consumers.

Place Utility

The value added to products by having them available at the place where they are needed or desired by consumers.

Made-To-Order PCs

Computers that are custom built to customer specifications, allowing for personal choice in components and specifications.

Marketing Channel

A collection of procedures or actions required for the transition of goods ownership from the production site to the consumption location.