Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It is positive
B
It is negative
C
It is zero
D
It is indeterminate
Understanding the Answer
Let's break down why this is correct
Answer
The marginal benefit of increasing production refers to the extra advantage or profit gained from making one more unit of a product. When the additional revenue generated from selling this extra unit is greater than the additional cost of producing it, it means that the production is worthwhile. For example, if a factory produces one more toy and sells it for $10, but the cost to make that toy is only $6, the factory gains a marginal benefit of $4. This means that increasing production is beneficial because the extra revenue exceeds the expenses, leading to greater overall profit. Therefore, businesses should consider increasing production when the marginal benefit is positive, as it helps them grow and succeed.
Detailed Explanation
When you make more and earn more than it costs, the benefit is positive. Other options are incorrect because Some might think that increasing costs always leads to less benefit; This answer suggests there is no benefit.
Key Concepts
marginal benefit
Topic
Marginal Analysis
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.