Which of the following is TRUE regarding marginal benefit?
I. The marginal benefit curve shows the benefit firms receive by producing another unit of a good
II. Marginal benefit increases as more and more of a good is consumed.
III. Marginal benefit shows the maximum amount a person is willing to pay to obtain one more uni good.
A) III only
B) I and II
C) II and III
D) I and III

Question

Quizplus · Accepted Answer

Marginal benefit refers to the additional satisfaction or utility a consumer receives from consuming an additional unit of a good. It is typically represented by the maximum amount a person is willing to pay for that additional unit, not the benefit firms receive or an increasing benefit with more consumption.

Which of the Following Is TRUE Regarding Marginal Benefit