Join thousands of students who trust us to help them ace their exams!Watch the first video
Multiple Choice
The point at which it is no longer advantageous to buy in bulk is known as marginal:
A
cost
B
utility
C
revenue
D
benefit
Verified step by step guidance
1
Understand the concept of 'marginal' in microeconomics, which refers to the additional or incremental change resulting from one more unit of an action, such as buying or producing one more item.
Recognize that 'marginal cost' is the additional cost incurred from producing or buying one more unit, while 'marginal utility' is the additional satisfaction or benefit gained from consuming one more unit.
Identify that the point where it is no longer advantageous to buy in bulk occurs when the additional benefit from buying one more unit equals the additional cost of that unit.
This point is where the 'marginal benefit' (or marginal utility) equals the 'marginal cost', meaning buying more does not increase overall advantage or satisfaction.
Therefore, the term describing the point at which it is no longer advantageous to buy in bulk is related to 'marginal benefit' or 'marginal utility', not cost, revenue, or simply 'benefit' alone.