The marginal benefit curve from a good
A)is upward- sloping.
B)shows the most a consumer is willing to pay for one more unit of that good.
C)is bowed outward.
D)is vertical.
E)shows the benefit a firm receives from producing one more unit of that good.

Question

Quizplus · Accepted Answer

The marginal benefit curve from a good shows the additional benefit a consumer receives from consuming one more unit of a good, and is upward-sloping because as more units of a good are consumed, the marginal benefit decreases. The curve also shows the maximum amount a consumer is willing to pay for one more unit of that good, which is why it is commonly used in determining the optimal quantity of a good to produce and sell.

The Marginal Benefit Curve from a Good