In Economic Analysis, at the Optimal Quantity of an Activity

question 199

Multiple Choice

In economic analysis, at the optimal quantity of an activity:

• A) marginal benefit exceeds marginal cost by the greatest amount.
• B) total benefit exceeds total cost by the greatest amount.
• C) marginal benefit equals marginal cost.
• D) total benefit exceeds total cost by the greatest amount and marginal benefit equals marginal cost.

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Definitions:

Unconsciously

Pertaining to the part of the mind that is inaccessible to the conscious mind but that affects thoughts and behaviors.

Gratification

The state of pleasure or satisfaction obtained from achieving a goal or fulfilling a desire.

Freud

An influential figure in psychology, known for his theories of the unconscious mind, the mechanism of repression, and the psychoanalytic model of the mind.

Pleasure Seeking

The pursuit of activities and experiences that are expected to bring joy or satisfaction.