Question

What is the difference between marginal values and average​ values? A. Marginal values show the total benefit or cost from consuming a​ good, while average values are the total benefit or cost from consuming a good divided by the amount of the good consumed. B. Marginal values show the additional benefit or cost from consuming an additional unit of a​ good, while average values are the benefit or cost per unit of a good. C. Marginal values show the ordinal benefit or cost from consuming an additional unit of a​ good, while average values are the cardinal benefit or cost from consuming an additional unit of a good. D. Marginal values show the benefit or cost from consuming one unit of a​ good, while average values are the benefit or cost from consuming all units of a good. E. Marginal values show the benefit from consuming an additional unit of a​ good, while average values are the cost from consuming an additional unit of a good.

Answer 1

Answer:

B

Explanation:

We can derive the answer from the mathematical definitions. For example for Marginal Costs and Average Costs

• Marginal Costs are defined as the derivative of Total Cost with respect to the quantity produced: $\frac{\partial TC}{\partial q}$. Which can be interpreted as the additional cost of producing an additional unit
• Marginal Costs are defined as the ratio between Total Cost and quantity produced: $\frac{TC}{q}$, so it's the cost per unit produced