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QuizMultiple Choice

Profit — Quiz

Question 1 • Personal Finance and Economics

What is the best definition of marginal benefit?

Answer
A
the price of producing one additional unit of a good
B
the financial gain from business activity minus expenses
C
the additional income gained from selling an additional good
D
the possible income from producing an additional item

Explanation

Marginal benefit is the extra benefit gained from one additional unit of an activity. In this context, selling one more good brings additional income, so the best choice is “the additional income gained from selling an additional good.” The price of producing one extra unit describes marginal cost, not marginal benefit.

AI-written and checked against the verified answer.

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