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 64 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

  • Member
  • Posts:
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

A simulated-color map of the surface of Venus as measured by synthetic aperture radar on the Magella A simulated-color map of the surface of Venus as measured by synthetic aperture radar on the Magella
Preschoolers benefit from helping with meal preparation, especially with foods they like Preschoolers benefit from helping with meal preparation, especially with foods they like
The secular trend in growth as measured in Swedish (a) girls and (b) boys between 1883 and 1968. The secular trend in growth as measured in Swedish (a) girls and (b) boys between 1883 and 1968.
What are examples of ideal forms? What are examples of ideal forms?
After all valves have been properly measured and adjusted as necessary, start the reassembly process ... After all valves have been properly measured and adjusted as necessary, start the reassembly process ...
Injuries That Benefit from Burn Center Care Injuries That Benefit from Burn Center Care
Video: Introduction to Eating Disorders

For a complete list of videos, visit our video library