An Activity's Marginal Benefit Is ________ at the Optimal Quantity

question 153

Multiple Choice

An activity's marginal benefit is ________ at the optimal quantity.

• A) zero
• B) greater than zero
• C) less than zero
• D) equal to the marginal cost
• E) greater than the marginal cost

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Definitions:

Supply Curves

Supply curves graphically represent the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to sell.

Demand And Supply

The fundamental economic model that explains how prices are determined in a market, based on the desires and capabilities of buyers and sellers.

Equilibrium Level

The state where market supply and demand balance each other, and, as a result, prices become stable.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.