What is the relationship between the marginal benefit, value, and demand?

What will be an ideal response?

The value of one more unit of a good is its marginal benefit. The marginal benefit of a good or service is measured by the maximum amount that consumers are willing to pay for one more unit of a good or service. The demand curve shows the maximum consumers are willing to pay for each additional unit, so the demand curve is the same as the marginal benefit curve.

Economics

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If the economy is inflationary, the Fed would most likely:

a. increase bank reserves by raising the discount rate. b. increase bank reserves by buying government securities c. decrease bank reserves by lowering the discount rate. d. decrease bank reserves by selling government securities. e. decrease bank reserves by lowering the legal reserve requirement.

Economics

When economies of scale exist, a decrease in the level of output will lead to:

a. a decrease in cost per unit. b. an increase in cost per unit. c. no change in cost per unit. d. an increase in total cost.

Economics