A)How Are Marginal Cost and Marginal Benefits Related to Total

question 12

Essay

a)How are marginal cost and marginal benefits related to total cost and total benefit curves? Illustrate your answer using carefully labeled diagrams.
b)Illustrate the optimal choice of an activity using both a total cost and total benefit curve diagram and a MC and MB curve diagram.

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Definitions:

UCS

An acronym for "Unconditioned Stimulus," a stimulus that naturally and automatically triggers a response without prior learning.

CS

Common shorthand for "conditioned stimulus," a term from classical conditioning in psychology that refers to a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

UCR

Unconditioned Response, an automatic response to a stimulus that does not need to be learned.

CR

In conditioning, this stands for conditioned response, which is a learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.