Question

4 $7.00 5 $7.50 $0.50 MB $4.00 $3.50 $3.00 s2.so $2.50 $2.00 $1.s0 $1.00 1 23 45678910 Songs Which of the curves on the above graph represent Tony's marginal benefit for downloaded songs MB1 MB2 MB3 0 F4 FS F7 F8 F9

Answer 1

We know that the marginal benefit is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. A person's marginal benefit is the maximum amount he is willing to pay to consume that additional unit of a good or service.

It looks like that a part of the table above the graph is missing. But as per the given information in the table,if the third column represents the Marginal benefit of the downloaded songs, then the answer should be MB₁.

Ans.) MB₁

As per the table, the marginal benefit from the 5th song is $0.50 .and in the graph, only MB₁ is a curve that gives a point (5,0.50) i.e a marginal benefit of 0.50 for 5 songs downloaded. For the rest two curves, the marginal benefit is greater than $1 for 5 songs downloaded. Therefore with the limited information available,the most appropriate answer would be MB₁ .