The marginal benefit of an activity is the
A) same as the total benefits of the activity.
B) total benefit divided by the level of the activity.
C) change in the activity divided by the change in benefits.
D) extra benefit associated with an extra unit of the activity.
E) total benefit divided by the change in the level of the activity.

Question

Quizplus · Accepted Answer

The marginal benefit of an activity is the extra benefit associated with an extra unit of the activity. It is not the same as the total benefits of the activity (A), nor is it the total benefit divided by the level of the activity (B) or the change in the activity divided by the change in benefits (C). It is also not equal to the total benefit divided by the change in the level of the activity (E), as that would be the average benefit, rather than the additional benefit received from the last unit of activity.

The Marginal Benefit of an Activity Is the