Purchase Solution

This posting addresses marginal benefits and marginal costs.

Not what you're looking for?

Ask Custom Question

Marginal benefits and marginal costs

A. Capture the way total benefits and total costs change as the amount of an activity changes just a little bit
B. Are constant, regardless of the amount of an activity that is pursued
C. Tend to increase as a decision maker does more of an activity
D. Tend to increase as a decision maker does more of an activity

The marginal benefit of an action

A. Equals the additional benefit produced by extra units of X and tends to decrease as X increases
B. Equals the additional benefit produced by the total units of X and tends to increase as X increases
C. Equals the additional benefit produced by the total units of X and tends to decrease as X increases
D. Equals the additional benefit produced by extra units of X and tends to increase as X increases

Purchase this Solution
Solution Summary

The solution provides the correct answers to multiple choice questions regarding marginal benefits and marginal costs. References are also provided.

Solution Preview

1. The correct answer is A.

The main advantage of a marginal benefit and marginal cost analysis is that it shows the changes in the benefits and costs with varying degrees of activity. Management changes the ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Managerial Economics

    //After analyzing the importance of marginal analysis in managerial economics, we will discuss about the marginal costs and marginal benefits involved in the Marginal Analysis.

  • Marginal Costs and Benefits of Pursuing Additional Education

    This posting clearly depicts the marginal costs and benefits of pursuing additional education and the inherent risks associated with this decision as well.

  • efficient level of precaution

    What if accidents costs decrease with precaution? All else held equal, how does this affect the efficient level of precaution? Explain. The optimal quantity of precausion will be at the point where marginal cost is equal to marginal benefits.

  • Marginal Benefits of Abating Emissions

    In order to set such a limit efficiently, the government must know the marginal costs and benefits of pollution to the gasoline users and the environment. This would align the gasoline user's private marginal cost with the social marginal cost.

  • strategic decision based on productivity, wages and benefits

    163673 Describing a company that has made a strategic decision based on productivity, wages and benefits, and other fixed and variable costs. Productivity and Cost Paper I need a subject to write this paper over.

  • Socially efficient level

    (d) What happens to the marginal damages, marginal abatement costs, and total net benefits if 1 million more tons are abated compared to (a)? Show your work.

  • diminishing marginal productivity

    What intangible costs and benefits should also be included in our economic decision making relative to staying in a job or finding a new job? 5.

  • Opportunity cost, marginal cost, relevant cost

    Determining marginal costs and marginal benefits is simply getting the difference between the costs and benefits as a result of the decision and the costs and benefits before or without the implementation of the decision.

  • Cost Benefit Analysis

    Next, use Excel to provide a graph of Total Benefits and Costs and a graph of Marginal benefits and costs. Given the table, and the developed graphs, discuss your results.

View More Related Solutions