Use the figure below to answer the following questions.
Figure 2.2.1
-In Figure 2.2.1, the curve labelled A is the _______ curve and the curve labelled B is the _______ curve.
A)marginal benefit; marginal cost
B)marginal benefit; trade
C)marginal cost; trade
D)production possibilities; trade
E)marginal cost; marginal benefit

Question

Use the figure below to answer the following questions.
  Figure 2.2.1
-In Figure 2.2.1, the curve labelled A is the _______ curve and the curve labelled B is the _______ curve.
A)marginal benefit; marginal cost 
B)marginal benefit; trade 
C)marginal cost; trade 
D)production possibilities; trade 
E)marginal cost; marginal benefit

Quizplus · Accepted Answer

Curve A represents marginal benefit, which shows the additional benefit to consumers from consuming an additional unit of the good. Curve B represents marginal cost, which shows the additional cost to produce an additional unit of the good. The intersection of these curves represents the equilibrium point where the optimal level of production is achieved. Therefore, the correct choice is E, where curve A is the marginal benefit curve and curve B is the marginal cost curve.

Use the Figure Below to Answer the Following Questions