Question

The agricultural extension agent told the farmer that one more crop-dusting will likely add a ton of additional wheat to the harvest. The rational farmer then calculated the selling price of a ton of wheat, since he would decide to crop-dust again if and only if and only if
the marginal benefit is greater than the marginal cost of an additional crop-dusting.
the additional crops grown from one more crop-dusting (the marginal product) is rising.
the total benefits from all crop-dustings is greater than the total cost of all crop-dustings.

Answer 1

Answer:

The marginal benefit is greater than the marginal cost of an additional crop-dusting.

Explanation:

Marginal benefit is the extra utility derived from consuming one more unit or a good or service. Is the maximum amount that a consumer can pay for consuming an additional unit of a product or a service.

The concept of marginal benefit focuses on why consumers are ready to pay a specific amount of money for some goods, but refrain from doing the same for another product.

This concept helps companies ensure that the utility of their products does not diminish.

A marginal cost is the additional cost to produce one more unit. It is high initially and drops as production increases.

In the intersection of marginal benefit and cost, is the point where the marginal revenue is equal to the marginal cost.

If the marginal revenue is bigger than the marginal cost, is convenient.