Answer to Question 1
The marginal benefit of a good is the benefit received from consuming one more unit of the good. The marginal benefit of a good or service is measured by the most people are willing to pay for one more unit of it. The data in the table do not provide information on how much people are willing to pay for an additional unit of food. The table has no information on the marginal benefit of food.
Answer to Question 2
The model of perfect competition implies an efficient allocation of resources among firms due to the assumption of profit maximization. In order to maximize profit, a firm must minimize the cost of producing its chosen level of output. This means that the firm must choose a production technology that produces the output it wants at the lowest cost. Also, if all firms pay the same input prices, the marginal revenue product of the last unit of an input hired will be the same in all firms. This occurs because maximizing profit means hiring an input up until the inputs marginal revenue product is equal to its price.
Table Salt
Cross-sectional data showing that the amount of effort spent on personal health care increases with
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A physician uses a portable electronic tablet to enter patient data while in the examination room.
Redrape the back, face the head of the table, and apply passive touch as finishing technique. Gently ...
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