Question

what is the best definition of marginal benefit?
the possible income from producing an additional item
the price of producing one additional unit of a good
the additional income gained from selling an additional good
the financial gain from business activity minus expenses

Explanation:

To determine the best definition of marginal benefit, we analyze each option:

• Option 1: "Possible income" is not accurate as marginal benefit is about actual additional income from selling, not just possible income from producing.
• Option 2: The price of producing an additional unit is marginal cost, not marginal benefit.
• Option 3: Marginal benefit is the additional income (revenue) gained from selling one more unit of a good, so this matches the definition.
• Option 4: This defines profit (financial gain minus expenses), not marginal benefit.

Answer:

C. the additional income gained from selling an additional good