Asked by Gavin VandenTop on Apr 24, 2024
Verified
While eating pizza,you discover that the marginal benefit of eating one more slice is greater than the marginal cost of that slice.You conclude that:
A) you will be better off if you eat one more slice.
B) you will be no better off and no worse off if you eat one more slice.
C) you will be worse off if you eat one more slice.
D) the total cost of eating the pizza will be more than the total benefit of eating the pizza.
Marginal Benefit
The extra pleasure or benefit obtained from consuming an additional unit of a product or service.
Marginal Cost
Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.
- Gain an insight into the idea of marginal benefit and its role in influencing choices.
- Use marginal analysis in assorted scenarios to determine the most advantageous decision-making.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
A
Explanation :
If the marginal benefit of eating one more slice is greater than the marginal cost, it means that you will receive more satisfaction from the additional slice than it will cost you. Therefore, you should eat one more slice as it will make you better off - increasing your total satisfaction from the pizza.
Learning Objectives
- Gain an insight into the idea of marginal benefit and its role in influencing choices.
- Use marginal analysis in assorted scenarios to determine the most advantageous decision-making.
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