The Marginal Benefit of Each Additional Unit of a Good

question 117

Multiple Choice

The marginal benefit of each additional unit of a good consumed

• A) increases as more is consumed.
• B) is always equal to its marginal cost.
• C) decreases as more is consumed.
• D) will maximize consumer surplus.
• E) is equal to the deadweight loss if the unit of the good is not produced.

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Definitions:

Par

The face value of a bond or stock, or the standard level for a currency.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another.

Shipping Charge

A fee imposed by a carrier for the handling and transportation of goods from one location to another.