The following table provides the costs (Cost A and Cost B)and the benenfits associated with each unit of activity
-Consider the Benefit column.As additional units of the activity are undertaken,which of the following statements is the most appropriate?
A) The benefit is rising by increasing marginal amounts.
B) The benefit is rising by decreasing marginal amounts.
C) The benefit is rising by constant marginal amounts.
D) The benefit is changing erratically with no obvious pattern.
E) The benefit is falling by constant marginal amounts.

Question

Quizplus · Accepted Answer

The benefit is rising by decreasing marginal amounts, as each additional unit of activity results in a smaller increase in benefit compared to the previous unit.

The Following Table Provides the Costs (Cost a and Cost