Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Marginal benefit is the additional satisfaction gained from consuming one more unit of a good.
B
The Marginal Benefit per Dollar helps to compare the value of different goods.
C
Marginal benefit increases as the quantity consumed increases for all goods.
D
A higher price of a good always leads to a lower marginal benefit.
E
Understanding marginal benefit calculations can help optimize spending within a budget.
Understanding the Answer
Let's break down why this is correct
Answer
Marginal Benefit Calculation is about understanding how much extra satisfaction or benefit you get from consuming one more unit of something, like a product or service. For example, if you are really thirsty and drink a glass of water, the first glass gives you a lot of satisfaction, but the second glass might not feel as rewarding. This idea helps people make decisions by comparing the extra benefit of an action to its cost. If the marginal benefit of buying another item is greater than the price you have to pay, it makes sense to go ahead and buy it. Therefore, the key idea is that we weigh the additional benefits against the costs to make smart choices.
Detailed Explanation
Other options are incorrect because This statement is misleading; This option confuses the idea of marginal benefit with price.
Key Concepts
Marginal Benefit Calculation
Consumer Decision Making
Utility Maximization
Topic
Marginal Benefit Calculation
Difficulty
easy level question
Cognitive Level
understand
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