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

Business

Deegan Wang

6 October, 07:17

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.

+1

Answers (1)

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Christina Hutchinson · 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