As More of a Public Good Is Produced,the Marginal Benefit

question 67

Multiple Choice

As more of a public good is produced,the marginal benefit of each additional unit ________ and as more of a private good is produced,the marginal benefit of each additional unit ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases
• E) does not change; does not change

---

Definitions:

Variable Cost

Expenses that fluctuate in direct proportion to the amount of production, including raw materials and direct labor costs.

Grinding Machine Time

This refers to the amount of time a grinding machine is in actual operation to perform its designated tasks.

Additional Minute

Incremental time that may be added to a process or activity, often used in planning or scheduling to account for unexpected delays or extensions.

Existing Capacity

Refers to the maximum production volume or service level that an organization can currently achieve with its existing resources and facilities.