Asked by Raisa Anjum on Jun 02, 2024
Verified
(Figure: The Marginal Benefit Curve) Use Figure: The Marginal Benefit Curve.The total benefit of mowing four lawns is approximately:
A) $25.
B) $35.
C) $80.
D) $114.
Marginal Benefit Curve
A Marginal Benefit Curve represents the additional benefit that a consumer derives from consuming one more unit of a good or service, often decreasing as consumption increases.
Total Benefit
The total gain received from consuming a good or service, often evaluated in terms of satisfaction or utility.
- Evaluate the effect of an activity's quantity on its cumulative benefits.
- Assess and comprehend the information presented in diagrams and tables about marginal and total benefits.
Verified Answer
FH
fatema hassnJun 04, 2024
Final Answer :
D
Explanation :
The marginal benefit curve shows that the fourth lawn mowed provides a marginal benefit of $29. Therefore, the total benefit of mowing four lawns is approximately $114 ($29 x 4 = $116, but since the first lawn mowed only provides a marginal benefit of $2, we subtract that from the total). Therefore, the best choice is to mow all four lawns.
Learning Objectives
- Evaluate the effect of an activity's quantity on its cumulative benefits.
- Assess and comprehend the information presented in diagrams and tables about marginal and total benefits.
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