What Typically Happens to Benefits as the Amount of an Activity

question 68

Multiple Choice

What typically happens to benefits as the amount of an activity is increased?

• A) Total benefits remain constant.
• B) Marginal benefit increases.
• C) Marginal benefit remains constant.
• D) Marginal benefit decreases.
• E) The marginal benefit changes only if the marginal cost changes.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain time.

Put Option

A put option is a financial contract giving the option holder the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

Right to Buy

An option that gives the holder the right, but not the obligation, to purchase a specific asset at a set price within a certain timeframe.

Standard Time

The amount of time that should be required to complete a task or process based on normal working conditions and average worker performance.