Recall the Application about the best speed at which to sail an ocean cargo ship to answer the following question(s).
-Sailing an ocean cargo ship slower to save on the expense of fuel as opposed to sailing it faster to save time and therefore allow it to make more deliveries makes sense if the ________ of sailing slower is less than the ________ of sailing slower.
A) marginal benefit; marginal cost
B) marginal cost; marginal benefit
C) marginal benefit; opportunity cost
D) marginal cost; opportunity cost

Question

Quizplus · Accepted Answer

The correct answer is B) marginal cost; marginal benefit because it makes sense to sail slower if the marginal cost (such as fuel savings) of doing so is less than the marginal benefit (such as the value of time saved and additional deliveries made by sailing faster).

Recall the Application About the Best Speed at Which to Sail