A college student decides to spend the afternoon watching three movies rented from Red Box.The cost of each movie is $1.The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie.What was the marginal benefit received by the student when renting the 3rd movie?

Question

Quizplus · Accepted Answer

The marginal benefit is the additional benefit received from consuming one more unit of a good or service. The student was willing to pay $2 for the third movie, so the marginal benefit of renting the third movie is $2.

A College Student Decides to Spend the Afternoon Watching Three