Asked by Ishaan Backliwal on Jun 22, 2024

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Wendy sells ice-making machines.She can sell six per week at a price of $2,000 per machine.If she charges $2,100 per machine,she will sell only five per week.The marginal benefit of selling the sixth ice-making machine is:

A) $2,000.
B) $2,100.
C) $12,000.
D) $1,500.

Marginal Benefit

The additional satisfaction or utility gained from consuming one more unit of a good or service.

  • Understand the principle of marginal benefit and its significance in enhancing resource distribution.
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Yarianna BadilloJun 24, 2024
Final Answer :
D
Explanation :
The marginal benefit is the additional benefit of selling one more unit. In this case, the marginal benefit of selling the sixth ice-making machine is the difference in revenue between selling five and six machines.

If Wendy sells six machines per week at $2,000 each, her total revenue is 6 x $2,000 = $12,000.

If she sells only five machines per week at $2,100 each, her total revenue is 5 x $2,100 = $10,500.

The difference in revenue between the two scenarios is $1,500, which is the marginal benefit of selling the sixth ice-making machine.