Asked by Cynthia Ocampo on May 23, 2024
Verified
The marginal benefit Joseph gets from purchasing a fourth pair of shoes is
A) the same as the total benefit he gets from purchasing four pairs of shoes.
B) more than the marginal cost of purchasing the fourth pair of shoes.
C) the total benefit he gets from purchasing four pairs of shoes minus the total benefit he gets from purchasing three pairs of shoes.
D) the total benefit he gets from purchasing five pairs of shoes minus the total benefit he gets from purchasing four pairs of shoes.
Marginal Benefit
The supplementary pleasure or utility a consumer experiences when an additional unit of a good or service is consumed.
Marginal Cost
The financial commitment needed to produce an additional unit of a product or service.
- Analyze how the marginal analysis framework applies to decision-making.
Verified Answer
AB
Akshay BanerjeeMay 29, 2024
Final Answer :
C
Explanation :
Marginal benefit is the additional benefit obtained from consuming one more unit of a good or service. It is calculated as the difference in total benefit received from consuming an additional unit compared to the total benefit received from the previous level of consumption. Therefore, the marginal benefit of purchasing a fourth pair of shoes is the difference in total benefit between four pairs and three pairs of shoes.
Learning Objectives
- Analyze how the marginal analysis framework applies to decision-making.
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