This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is marginal benefit? How is it measured? What will be an ideal ... (Read 31 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
What is marginal benefit? How is it measured?
 
  What will be an ideal response?

Question 2

A video rental store rents old movies for 1.50 per day. On average, 300 movies are rented each day. The store receives several copies of a new smash movie just released in video and decides to rent these movies at 3.50 per day.
 
  Now, 400 movies are rented each day. Thus, though the average rental price of a movie increased, the quantity rented increased. Does this mean that the law of demand does not hold for this market?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ms_sulzle

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 29, 2018
Answer to Question 1

The marginal benefit from a good or service is the benefit received from consuming one more unit of it. It is measured by what an individual is willing to give up (or pay) for an additional that last unit.

Answer to Question 2

The two types of movies (old and new release) represent two different markets. Thus, there is a demand for old movies and a demand for new releases. Both of these demand curves would be downward sloping, meaning that the law of demand applies.


cartlidgeashley

  • Member
  • Posts: 572
Reply 2 on: Jun 29, 2018
:D TYSM

cam1229

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Summary of Coordination of Benefit Rules Summary of Coordination of Benefit Rules
What are examples of ideal forms? What are examples of ideal forms?
A Production Function with Diminishing Marginal Product of Capital A Production Function with Diminishing Marginal Product of Capital
Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ... Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ...
Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ... Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ...
If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas? If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas?
Video: Electrocardiogram Examination

For a complete list of videos, visit our video library