The marginal benefit of an activity is i. the benefit from a one-unit increase in the activity
Ii. the benefit of a small, unimportant activity.
Iii. measured by what the person is willing to give up to get one additional unit of the activity.
A)i only
B)ii only
C)iii only
D)i and iii
E)ii and iii

Question

Quizplus · Accepted Answer

Marginal benefit is the additional benefit gained from consuming one more unit of a good or service. It is measured by what the person is willing to give up (opportunity cost) to get one additional unit of the activity (iii). Therefore, (i) and (iii) are correct, while (ii) is incorrect.

The Marginal Benefit of an Activity Is I