Explain Absolute Threshold.Give One Example of Absolute Threshold

question 1

Essay

Explain absolute threshold.Give one example of absolute threshold.

---

Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Increase Quantity

A strategy or action aimed at raising the amount of goods or services produced or available.

Maximum Willingness to Pay

The highest amount a consumer is willing to spend on a good or service, reflecting the perceived value.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.