Question

The extra benefit resulting from a small increase in an activity is called the diminishing returns of the activity. marginal cost. opportunity cost. marginal benefit.

Answer 1

Answer:

marginal benefit.

Explanation:

Marginal benefit is the increase in benefit as a result of an increase in an activity.

For example, if the utility you derive from consuming 3 cones of ice cream is 20 utils. If you consume 1 extra one, utility increases to 25 utils.

Marginal utility is 25 utils - 20 utils = 5 utils

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

the law of diminishing returns which says as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.

Marginal cost  is the increase in cost as a result of an increase in an activity.