For Every Gift That a Gives to B from the First

question 26

Multiple Choice

For every gift that A gives to B from the first to the tenth gift,A receives a net benefit of $10.The additional cost to A of giving an additional gift is constant at $5.It follows that A's marginal benefit curve for giving gifts to B is ___________________ (assuming that we place "marginal benefits" on the vertical axis and "number of gifts" on the horizontal axis) .

• A) downward-sloping over units 1 -10.
• B) upward-sloping over units 1-10.
• C) horizontal over units 1-10.
• D) vertical over units 1-10.
• E) There is not enough information provided to answer the question.

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Definitions:

High-end Watches

Timepieces that are considered to be of the highest quality, often characterized by their craftsmanship, exclusivity, and luxury branding.

Customer Service

The support and assistance provided by a company to its customers before, during, and after purchasing products or services.

New Markets

Refers to the process or strategy of identifying and entering areas or sectors where a business can sell its products or services that were previously unexplored or untapped.

Unrelated Diversification

A business strategy where a company expands into markets or products that are not related to its current operations.