.pf{position:relative;background-color:#fff;overflow:hidden;margin:0;border:0}.pc{position:absolute;border:0;padding:0;margin:0;top:0;left:0;width:100%;height:100%;overflow:hidden;display:block;transform-origin:0 0;-ms-transform-origin:0 0;-webkit-transform-origin:0 0}.bi{position:absolute;border:0;margin:0}.c{position:absolute;border:0;padding:0;margin:0;overflow:hidden;display:block}.t{position:absolute;white-space:pre;font-size:1px;transform-origin:0 100%;-ms-transform-origin:0 100%;-webkit-transform-origin:0 100%;unicode-bidi:bidi-override;-moz-font-feature-settings:"liga" 0}.t:after{content:''}.t:before{content:'';display:inline-block}.t span{position:relative;unicode-bidi:bidi-override}._{display:inline-block;color:transparent;z-index:-1}.pi{display:none}@media screen{.pf{margin:13px auto;box-shadow:1px 1px 3px 1px #333;border-collapse:separate}}.ff1{font-family:ff1;line-height:.938477;font-style:normal;font-weight:400;visibility:visible}@font-face{font-family:ff2;src:url(data:application/font-woff;base64,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) format("woff")}.ff2{font-family:ff2;line-height:.779297;font-style:normal;font-weight:400;visibility:visible}.m0{transform:matrix(.320260,0,0,.320260,0,0);-ms-transform:matrix(.320260,0,0,.320260,0,0);-webkit-transform:matrix(.320260,0,0,.320260,0,0)}.v1{vertical-align:-4.003761px}.ls1{letter-spacing:0}.ls0{letter-spacing:45.466709px}.sc0{text-shadow:-.015em 0 transparent,0 .015em transparent,.015em 0 transparent,0 -.015em transparent}@media screen and (-webkit-min-device-pixel-ratio:0){.sc0{-webkit-text-stroke:.015em transparent;text-shadow:none}}.ws1{word-spacing:-13.356546px}.ws0{word-spacing:-7.791319px}.ws2{word-spacing:0}._0{margin-left:-1.009145px}._1{width:1.457566px}.fc0{color:#000}.fs2{font-size:28.026326px}.fs1{font-size:44.041370px}.fs0{font-size:48.045131px}.y21{bottom:-229.127052px}.y20{bottom:-208.867564px}.y1f{bottom:-188.479853px}.y1e{bottom:-168.220365px}.y1d{bottom:-147.832654px}.y1c{bottom:-127.573166px}.y1b{bottom:-107.185454px}.y1a{bottom:-86.925967px}.y19{bottom:-66.538255px}.y18{bottom:-46.278768px}.y17{bottom:-25.891056px}.y16{bottom:-5.631569px}.y0{bottom:0}.y15{bottom:14.756143px}.y14{bottom:35.015630px}.y13{bottom:55.403342px}.y12{bottom:75.662829px}.y11{bottom:96.050541px}.y10{bottom:116.310028px}.yf{bottom:136.69774px}.ye{bottom:156.957227px}.yd{bottom:177.344939px}.yc{bottom:197.604426px}.yb{bottom:217.992138px}.ya{bottom:238.251625px}.y9{bottom:258.639337px}.y8{bottom:278.898824px}.y7{bottom:299.286536px}.y6{bottom:319.546023px}.y5{bottom:339.933735px}.y4{bottom:360.193222px}.y3{bottom:380.580934px}.y2{bottom:400.840422px}.y22{bottom:485.095526px}.y1{bottom:507.293741px}.h3{height:34.978169px}.h4{height:36.761094px}.h2{height:507.295022px}.h1{height:1011.382316px}.h0{height:1014.588763px}.w1{width:783.997438px}.w0{width:784px}.x0{left:0}.x1{left:92.082194px}.x2{left:115.162622px}.x3{left:161.323479px}.x4{left:184.403908px}.x5{left:207.484336px}.x6{left:253.645193px}.x7{left:276.725621px}.x8{left:467.145568px}

ECON 1011 Lecture Notes - Lecture 6: Marginal Utility, Price Floor, Shortage

The point where the marginal cost is less than the marginal benefit than you must produce more. Marginal cost x=-change in y/change in x

United States

Principles of Economics I

Economics

Yezer

George Washington University

World History, 1500-Present

<p><p>Explain why you made the choice to go to your economics course lecture in terms of marginal benefits and marginal costs.<br></p> <table> <tbody> <tr> <td style="vertical-align:top;"></td> <td style="vertical-align:top;">The marginal benefit of going to the lecture (passing the inevitable quiz) was less than the marginal cost of going (missing an hour of leisure time).</td> </tr> <tr> <td style="vertical-align:top;"></td> <td style="vertical-align:top;">The marginal cost of not going to the lecture (failing the inevitable quiz) was less than the marginal benefit of not going (the hour of leisure time).</td> </tr> <tr> <td style="vertical-align:top;"></td> <td style="vertical-align:top;">The marginal cost of not going to the lecture (failing the inevitable quiz) was greater than the marginal cost of going (missing an hour of leisure time).</td> </tr> <tr> <td style="vertical-align:top;"></td> <td style="vertical-align:top;">The marginal benefit of going to the lecture (passing the inevitable quiz) was greater than the marginal cost of going (missing an hour of leisure time).<br> </td> </tr> </tbody> </table></p>

<p><p>2. The marginal princple implies that an individual should produce or consume where:</p> <p>a. marginal benefit exceeds marginal cost.</p> <p>b. marginal benefit is less than marginal cost.</p> <p>c. total benefit equals marginal cost.</p> <p>d. total benefit equals total cost.</p></p>

<div class="rvParagraph pNormal addblank">
<span class="rvTxt fNormal">Suppose electricity </span><span class="rvTxt fNormal">generates a </span><span class="">n</span><span class="">e</span><span class="">g</span><span class="">a</span><span class="">t</span><span class="">i</span><span class="">v</span><span class="">e </span><span class="rvTxt fNormal">externality in production.</span>
</div>
<div class="rvParagraph pNormal addblank"><span class="rvTxt fNormal"> If<span class="wbr">​</span><span class="nowrap"> so,</span> then</span></div>
<div class="rvParagraph pNormal addblank">
<div id="M1" class="dijitLayoutContainer dijitContainer mcControl" tabindex="-1" role="radiogroup" data-dojo-type="xl.player.controls.MultipleChoice" data-dojo-props="columns:1,distpos:0,distalign:0,multi:false,userResponse:-1,accessible:false,printing:false" aria-label="Multiple Choice">
<div id="xl_player_controls_MultipleChoiceAnswer_0" class="dijitLayoutContainer dijitContainer mcAnswerOverflow dijitLayoutContainer-child dijitLayoutContainer-dijitLayoutContainer" data-dojo-type="xl.player.controls.MultipleChoiceAnswer" data-dojo-props='label:"A.",multi:0,embeddedinputs:"",accessible:false'>
<div id="xl_player_controls__MultipleChoiceAnswerButton_0" class="mcButtonArea mcAnswer">
<div class="dijit dijitReset dijitInline dijitRadio" role="presentation"> </div>
<div class="dijit dijitReset dijitInline dijitRadio" role="presentation">A. the marginal social <span class="eqDocument" role="presentation" aria-hidden="true"><span class="">b</span><span class="">e</span><span class="">n</span><span class="">e</span><span class="">f</span><span class="">i</span><span class="">t </span></span>of electricity is <span class="eqDocument" role="presentation" aria-hidden="true"><span class="">l</span><span class="">e</span><span class="">s</span><span class="">s </span></span>than the marginal private benefit<span class="rvTxt fNormal">.</span>
</div>
</div>
</div>
<div id="xl_player_controls_MultipleChoiceAnswer_1" class="dijitLayoutContainer dijitContainer mcAnswerOverflow dijitLayoutContainer-child dijitLayoutContainer-dijitLayoutContainer" data-dojo-type="xl.player.controls.MultipleChoiceAnswer" data-dojo-props='label:"B.",multi:0,embeddedinputs:"",accessible:false'>
<div id="xl_player_controls__MultipleChoiceAnswerButton_1" class="mcButtonArea mcAnswer">
<div class="dijit dijitReset dijitInline dijitRadio dijitRadioChecked dijitChecked" role="presentation"> </div>
<label class="" for="dijit_form_RadioButton_1" aria-hidden="true">B. </label>the marginal social cost of electricity equals the marginal social benefit.</div>
</div>
<div id="xl_player_controls_MultipleChoiceAnswer_2" class="dijitLayoutContainer dijitContainer mcAnswerOverflow dijitLayoutContainer-child dijitLayoutContainer-dijitLayoutContainer" data-dojo-type="xl.player.controls.MultipleChoiceAnswer" data-dojo-props='label:"C.",multi:0,embeddedinputs:"",accessible:false'>
<div id="xl_player_controls__MultipleChoiceAnswerButton_2" class="mcButtonArea mcAnswer">
<div class="dijit dijitReset dijitInline dijitRadio" role="presentation"> </div>
<label for="dijit_form_RadioButton_2" aria-hidden="true">C. </label>the marginal social cost of electricity equals the marginal private cost.</div>
</div>
<div id="xl_player_controls_MultipleChoiceAnswer_3" class="dijitLayoutContainer dijitContainer mcAnswerOverflow dijitLayoutContainer-child dijitLayoutContainer-dijitLayoutContainer" data-dojo-type="xl.player.controls.MultipleChoiceAnswer" data-dojo-props='label:"D.",multi:0,embeddedinputs:"",accessible:false'>
<div id="xl_player_controls__MultipleChoiceAnswerButton_3" class="mcButtonArea mcAnswer">
<div class="dijit dijitReset dijitInline dijitRadio" role="presentation"> </div>
<label for="dijit_form_RadioButton_3" aria-hidden="true">D. </label>the marginal social cost of electricity is greater than the marginal private cost.</div>
</div>
<div id="xl_player_controls_MultipleChoiceAnswer_4" class="dijitLayoutContainer dijitContainer mcAnswerOverflow dijitLayoutContainer-child dijitLayoutContainer-dijitLayoutContainer" data-dojo-type="xl.player.controls.MultipleChoiceAnswer" data-dojo-props='label:"E.",multi:0,embeddedinputs:"",accessible:false'>
<div id="xl_player_controls__MultipleChoiceAnswerButton_4" class="mcButtonArea mcAnswer">
<div class="dijit dijitReset dijitInline dijitRadio" role="presentation"> </div>
<label for="dijit_form_RadioButton_4" aria-hidden="true">E. </label>the marginal social <span class="">c</span><span class="">o</span><span class="">s</span><span class="">t </span>of <span class="">e</span><span class="">l</span><span class="">e</span><span class="">c</span><span class="">t</span><span class="">r</span><span class="">i</span><span class="">c</span><span class="">i</span><span class="">t</span><span class="">y </span>is <span class="">l</span><span class="">e</span><span class="">s</span><span class="">s </span>than the marginal private cost.</div>
</div>
</div>
</div>

ECON 1011 Lecture Notes - Lecture 6: Marginal Utility, Price Floor, Shortage

ECON 1011 Full Course Notes

Document Summary

Get access

Related Documents

ECON 1011 Lecture Notes - Lecture 14: Marginal Revenue, Oligopoly, Market Power

ECON 1011 Study Guide - Midterm Guide: George Washington University, Marginal Utility, Cost

ECON 1011 Chapter Notes - Chapter 5: Marginal Cost, Social Cost, Externality

Related Questions

	The marginal benefit of going to the lecture (passing the inevitable quiz) was less than the marginal cost of going (missing an hour of leisure time).
	The marginal cost of not going to the lecture (failing the inevitable quiz) was less than the marginal benefit of not going (the hour of leisure time).
	The marginal cost of not going to the lecture (failing the inevitable quiz) was greater than the marginal cost of going (missing an hour of leisure time).
	The marginal benefit of going to the lecture (passing the inevitable quiz) was greater than the marginal cost of going (missing an hour of leisure time).