The benefit of an activity is
A) purely objective and measured in dollars.
B) the gain or pleasure that it brings.
C) the value of its sunk cost.
D) measured by what must be given up to get one more unit of the activity.
E) not measurable on the margin.

Question

Quizplus · Accepted Answer

The benefit of an activity refers to the gain or pleasure that it brings, which is subjective and cannot always be measured in dollars. Option A is incorrect as benefits are not always purely objective or measurable in terms of dollars. Option C refers to sunk costs, which are irrelevant to decision-making at the margin. Option D refers to the concept of opportunity cost, which is related to the benefit of an activity but not the same thing. Option E is incorrect as benefits can be measured on the margin, as they are the additional gain or pleasure received from each additional unit of an activity.

The Benefit of an Activity Is