Marginal analysis suggests that you will engage in more of an activity if the:
A. total benefit of the activity is less than the total cost.
B. additional benefit from the activity exceeds the additional cost.
C. additional cost of the activity exceeds the additional benefit.
D. total benefit from the activity exceeds the total cost.
Answer: B
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Firms hire labor at the point where the
A) nominal wage rate equals the marginal product of labor. B) real wage rate equals the marginal revenue product of labor. C) nominal wage rate equals the marginal revenue product of labor. D) real wage rate equals the marginal revenue product of capital.
Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.