Teresa eats three oranges during a particular day.The marginal benefit she enjoys from eating the third orange
A) can be thought of as the total benefit Teresa enjoys by eating three oranges minus the total benefit she would have enjoyed by eating just the first two oranges.
B) determines Teresa's willingness to pay for the first,second,and third oranges.
C) does not depend on how many oranges Teresa has already eaten.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

The marginal benefit of the third orange is the additional benefit that Teresa receives from consuming the third orange compared to just the first two. Therefore, option A is the correct answer. Option B is incorrect because marginal benefit does not determine willingness to pay, rather it is the other way around. Option C is also incorrect because marginal benefit always depends on the quantity consumed.

Teresa Eats Three Oranges During a Particular Day