Fully explain why the marginal cost of one good is actually the marginal benefit of the...
Fully explain why the marginal cost of one good is actually the marginal benefit of the good that is given when that good is produced.
Homework Answers
The marginal benefit is a decreasing curve and the marginal cost is an increasing which is a known fact and therefore as we keep on producing the marginal benefit would be more than marginal cost so that the net benefit keeps on increasing and at a point where you meet the net benefit would be maximum and after that point of production the marginal cost would be more than that of marginal benefit as a result of which the net benefit decreases from that point and that is the reason why the maximum net benefit occurs at a point where the marginal benefit equals the marginal cost and therefore whenever a good is produced it is produced in such a way that the marginal cost is equal to the marginal benefit so that the net benefit is maximum
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Fully explain why the marginal cost of one good is actually the
marginal benefit of the...
Which of the following choices is correct? Multiple Choice When marginal benefit is equal to marginal...
Which of the following choices is correct? Multiple Choice When marginal benefit is equal to marginal cost a sub-optimal amount of the good is produced. When marginal benefit is equal to marginal cost the least amount of the good is produced. When marginal benefit is equal to marginal cost the greatest amount of the good is produced. When marginal benefit is equal to marginal cost the smallest quantity of the good is produced.
The demand curve for a good is the same as the Select one: o marginal cost...
The demand curve for a good is the same as the Select one: o marginal cost curve of that good. o marginal benefit curve for that good. consumer surplus curve of that good. production possibilities frontier (PPA). o producer surplus from that good.
The marginal benefit of a public good is the A. benefit of the last person's consumption....
The marginal benefit of a public good is the A. benefit of the last person's consumption. B.marginal benefit of the individual person who places the highest value on the good, multiplied by the number of people in the economy. C.average of the marginal benefits of all the individuals at each quantity. D.marginal benefit of the individual person who places the lowest value on the good, multiplied by the number of people in the economy. E.sum of the marginal benefits of...
Suppose the government is producing a public good. If the marginal benefit of the last unit...
Suppose the government is producing a public good. If the marginal benefit of the last unit of a public good produced is greater than the marginal cost of that unit, to achieve the efficient amount of production, what should be done? A. The government should produce more units. B. The government should cease production. C. Private firms should take over the production and sale of the good. D. Nothing because the government is already producing the efficient quantity of the...
QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals...
QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals marginal cost c. marginal benefit is greater than marginal cost d. marginal benefit is less than marginal cost QUESTION 23 Efficient markets are considered rationing devices because a. consumers value the good or service the most will be the one who get it b. of government decree c. the equality of the market allows for all to benefit d. suppliers can produce the good...
Problem 6. The Marginal Benefit of hiring workers for a firm is given by the expression: MB 3,500 X. The Marginal C...
Problem 6. The Marginal Benefit of hiring workers for a firm is given by the expression: MB 3,500 X. The Marginal Cost to the firm of hiring workers is approximately given by the expression: MC = 5000.01X~. Please calculate the optimal amount of workers that the organization a. should hire. Draw a diagram of the solution b. Briefly explain the slopes of the Marginal Benefit and Marginal Cost Curves. Why does it cost more to hire each additional worker? Why...
A TOTAL BENEFIT TOTAL COST MARGINAL BENEFIT MARGINAL COST NET BENEFIT...
A TOTAL BENEFIT TOTAL COST MARGINAL BENEFIT MARGINAL COST NET BENEFIT 0 0 _____ XX XX 0 1 _____ _____ 100 _____ 80 2 _____ 50 90 _____ _____ 3 250 _____ _____ 40 _____ 4 _____ _____ _____ 60 150 5 340 220 _____ _____ _____ What is marginal benefit for the 4th unit of the activity? The optimal level of activity is: What is the net benefit of the 5th unit of the...
What is cost-benefit analysis of a public good? Why is it important? Why is it hard?
What is cost-benefit analysis of a public good? Why is it important? Why is it hard?
Assume Linda wishes to maximize her net benefit. Her total benefit and total cost schedule for...
Assume Linda wishes to maximize her net benefit. Her total benefit and total cost schedule for tutoring is given below. (1) Given this schedule, what is the marginal benefit and marginal cost for the addition of the 1st hour of tutoring? (2) Should Linda choose to tutor the 1st hour? Explain why or why not. (3) Is this Linda's efficient allocation of resource? Explain why or why not. Quantity Total Benefit Total Cost (Hours per day) 90 100
Marginal Cost Marginal Benefit and Marginal Cost (Dollars) 00:42:18 Marginal Benefit Quantity of Shoes Refer to...
Marginal Cost Marginal Benefit and Marginal Cost (Dollars) 00:42:18 Marginal Benefit Quantity of Shoes Refer to the diagram for athletic shoes. The optimal output of shoes is Multiple Choice Is where marginal cost equals marginal benefit O is where marginal beneft exceeds marginal costs 0 0
The demand curve for a good is the same as the Select one: o marginal cost curve of that good. o marginal benefit curve for that good. consumer surplus curve of that good. production possibilities frontier (PPA). o producer surplus from that good.
QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals marginal cost c. marginal benefit is greater than marginal cost d. marginal benefit is less than marginal cost QUESTION 23 Efficient markets are considered rationing devices because a. consumers value the good or service the most will be the one who get it b. of government decree c. the equality of the market allows for all to benefit d. suppliers can produce the good...
Problem 6. The Marginal Benefit of hiring workers for a firm is given by the expression: MB 3,500 X. The Marginal Cost to the firm of hiring workers is approximately given by the expression: MC = 5000.01X~. Please calculate the optimal amount of workers that the organization a. should hire. Draw a diagram of the solution b. Briefly explain the slopes of the Marginal Benefit and Marginal Cost Curves. Why does it cost more to hire each additional worker? Why...
What is cost-benefit analysis of a public good? Why is it important? Why is it hard?
Assume Linda wishes to maximize her net benefit. Her total benefit and total cost schedule for tutoring is given below. (1) Given this schedule, what is the marginal benefit and marginal cost for the addition of the 1st hour of tutoring? (2) Should Linda choose to tutor the 1st hour? Explain why or why not. (3) Is this Linda's efficient allocation of resource? Explain why or why not. Quantity Total Benefit Total Cost (Hours per day) 90 100
Marginal Cost Marginal Benefit and Marginal Cost (Dollars) 00:42:18 Marginal Benefit Quantity of Shoes Refer to the diagram for athletic shoes. The optimal output of shoes is Multiple Choice Is where marginal cost equals marginal benefit O is where marginal beneft exceeds marginal costs 0 0
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