When actions are finely divisible,the marginal benefit of action X is equal to
A) The slope of a line that is tangent to the total benefit curve at X
B) The slope of a line from the origin to a point on the total benefit curve at X
C) The marginal cost of X
D) The inverse of the slope of the total benefit curve at point X

Question

Quizplus · Accepted Answer

When actions are finely divisible, the total benefit curve is smooth, and we can find the marginal benefit of action X by calculating the slope of a line that is tangent to the total benefit curve at X. This is because the tangent line represents the instantaneous rate of change of the total benefit curve at that point, which is equal to the marginal benefit of X.

When Actions Are Finely Divisible,the Marginal Benefit of Action X