Caroline eats two bananas during a particular day.The marginal benefit she enjoys from eating the second banana
A) can be thought of as the total benefit Caroline enjoys by eating two bananas minus the total benefit she would have enjoyed by eating just the first banana.
B) determines Caroline's marginal cost of the first and second bananas.
C) does not depend on how many bananas Caroline has already eaten.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

The marginal benefit is the additional benefit that Caroline receives from consuming the second banana. Therefore, it can be calculated by subtracting the total benefit of the first banana from the total benefit of both bananas. Option B is incorrect because marginal benefit does not determine marginal cost. Option C is incorrect because marginal benefit is dependent on the number of bananas consumed.

Caroline Eats Two Bananas During a Particular Day