The marginal benefit curve is:

A. upsloping because of increasing marginal opportunity costs.

B. upsloping because successive units of a specific product yield less and less extra benefit.

C. downsloping because of increasing marginal opportunity costs.

D. downsloping because successive units of a specific product yield less and less extra benefit.

Question

Jonathon Schroeder

Business

23 October, 08:18

The marginal benefit curve is:

A. upsloping because of increasing marginal opportunity costs.

B. upsloping because successive units of a specific product yield less and less extra benefit.

C. downsloping because of increasing marginal opportunity costs.

D. downsloping because successive units of a specific product yield less and less extra benefit.

+4

Answers (1)

Know the Answer?

Kadin Webb · Answer 1

D. downsloping because successive units of a specific product yield less and less extra benefit.

Explanation:

This has to do with diminishing marginal productivity which causes that marginal costs to increase.

In true, close to 0 production, marginal costs decrease and marginal benefit curve increases. But because of diminishing marginal productivity, it (marginal costs curve) soons reaches a min and start increasing, which causes the marginal benefit curve to decrease