Author Question: Marginal benefit is equal to the ________ benefit a consumer receives from consuming one more unit ... (Read 116 times)

Marty · **on:** Jun 29, 2018

Marginal benefit is equal to the ________ benefit a consumer receives from consuming one more unit of a good or service.

A) additional B) unintended C) total D) surplus

Question 2

A firm that is producing the quantity at which marginal cost exceeds both average total cost and the market price will increase its economic profit by _______.

A. producing a larger quantity
B. raising the price to equal marginal cost
C. producing a smaller quantity
D. producing the quantity that minimizes average total cost

jackie · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

C The market price equals the firm's marginal revenue. When a firm's marginal cost exceeds its marginal revenue, the firm's profit increases if it decreases its production.