The benefit that arises from an increase in an activity is called

Question

Quizplus · Accepted Answer

The benefit that arises from an increase in an activity is the marginal benefit. Option A is incorrect as an incentive refers to something that motivates a person to act or behave in a particular way. Option B is incorrect as the marginal cost refers to the additional cost incurred from an increase in an activity. Option D is incorrect as opportunity cost refers to the value of the next best alternative forgone in an economic decision.

The Benefit That Arises from an Increase in an Activity