The marginal benefit of a taco is measured by
A) the price of the taco.
B) the amount of another good a person is willing to give up to get one more taco.
C) the amount of another good a person must give up to get one more taco.
D) a point on the PPF.
E) the opportunity cost of producing another taco.

Question

Quizplus · Accepted Answer

Marginal benefit is the additional benefit a person receives from consuming one more unit of a good. It is measured by the amount of another good that the person is willing to give up to acquire one more unit of the good. This is also known as the marginal rate of substitution (MRS). Therefore, the correct option is B.

The Marginal Benefit of a Taco Is Measured by