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If you were to walk into a restaurant having not eaten all day, you would thus be very hungry. As a result, assuming you had to eat at this restaurant, you would be willing to pay more for a meal than if you had just eaten. Logically, the more full you become, the less you would be willing to pay for a meal. This is an example of declining marginal benefit.
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If you have total cost and total benefit how do you get marginal cost and marginal benefit?
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
When does marginal benefit occur?
Marginal benefit 'occurs' for any benefit (price) function, since a marginal term is simply the first-order derivative of its parent function. Marginal benefit is strictly greater than zero only when a benefit function is always increasing in total benefit over its domain.
What is the equation for marginal net benefits?
Marginal net benefits= Marginal benefit- Marginal cost
What are typical shapes of marginal-benefit curves?
Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.
Is the marginal benefit of a glass of water large or small?
water is necessary for life, is the marginal benefit of water is large or small?
If you have total cost and total benefit how do you get marginal cost and marginal benefit?
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
When does marginal benefit occur?
Marginal benefit 'occurs' for any benefit (price) function, since a marginal term is simply the first-order derivative of its parent function. Marginal benefit is strictly greater than zero only when a benefit function is always increasing in total benefit over its domain.
What is the equation for marginal net benefits?
Marginal net benefits= Marginal benefit- Marginal cost
What is the Equation for the net benefits?
Marginal net benefits= Marginal benefit- Marginal cost
What is the optimal level of pollution?
when marginal benefit is equal to marginal cost To be more specific: When the marginal damage cost of polluting is equal to the marginal abatement cost of polluting (or the marginal benefit of polluting, which is equivalent to the MAC)
What are typical shapes of marginal-benefit curves?
Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.
Is the marginal benefit of a glass of water large or small?
water is necessary for life, is the marginal benefit of water is large or small?
What is an additional or extra benefit associated with an action?
Marginal Benefit
What is the additional or extra benefit associated with an action?
Marginal Benefit
How does an individual or household benefit from the law of diminishing marginal utility?
what is it marginal utility
Why does marginal cost tend to increase with output?
It is because of law of dimnishing marginal utility,when the ouput inreases,it also starts increasng as marginal product starts declining after the optimum utilisation of resources.
How does marginal revenue and marginal utility relate to capital?
Marginal revenue/margina utility return from capital represents the benefit of capital. When determining the optimal amount of capital, we must take into account the point when marginal benefit = marginal cost. This optimises profit/utility.
