Is the marginal benefit someone receives from a good or service the same as the price the person pays? Explain your answer
What will be an ideal response?
Generally the marginal benefit of a good or service is different than the price that is paid. The marginal benefit is the maximum amount a consumer is willing to pay for a good or service. Typically the consumer can buy the good or service for a price less than the maximum. (Indeed, the difference between the maximum price the consumer is willing to pay and the price actually paid is the consumer surplus.) However, it might be the case that the price precisely equals the maximum the consumer is willing to pay. In this case alone, the marginal benefit equals the price. (And in this case, the amount of the consumer surplus equals zero.)
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Explain monetary policy goals and discuss any goal conflicts in the long run and the short run
What will be an ideal response?
The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?
A) $1 B) $2 C) $3 D) More information is needed to determine the answer.