We measure the marginal of a good by what a for another unit of the good.
A) cost; person's preferences are
B) benefit; person must pay
C) cost; person is willing to pay
D) benefit; person is willing to pay

Question

Quizplus · Accepted Answer

The marginal benefit measures the additional benefit or utility a person receives from consuming one more unit of a good. This is determined by what the person is willing to pay for that additional unit, so the correct answer is D) benefit; person is willing to pay. The other options are incorrect because the marginal cost measures the additional cost of producing one more unit of a good and is not related to a person's preferences, while the person must pay for an additional unit is not relevant to marginal measurement.

We Measure the Marginal of a Good by What a for Another