Producers Must Understand the Marginal Benefit of Making an Additional Unit, Which Shows the

By Dylan Riley
Last Updated on

Looking for right answer to the question you searched for? Make sure to check below for the same:

Revised Social Studies Questions & Answers


Q.) Producers must understand the marginal benefit of making an additional unit, which shows the

  1. Actual gain
  2. Eventual gain
  3. Possible gain
  4. Unlikely gain

ANSWER: 3. Possible gain


Check Recently Added Questions & Answers on Social Studies



Here the correct answer will be possible gain because the producers should be understanding that the marginal benefit for making the additional unit, shows the possible gain.

The marginal benefit can be defined as extra benefits that come by enhancing the units in a specific activity.

The production of the additional unit is going to show the possible gain for the producers.  This is a possible gain as it won’t give the guarantee for what exactly will happen, and this can be the case of possible gain.

Marginal benefits are related to the increment of the consumption by the consumer of the additional product.

And the marginal cost or possible gain is about the input of increment in the company expenses that will be used to make the additional unit.

For producing the additional unit, there are some points that the producer should keep in mind like:

  • Why are the extra units being produced?
  • What will be the cost of making the extra unit?
  • What are the advantages of the extra unit?

When it’s important, social marginal and individual costs can be drawn separately. This will help in understanding the difference in acts that will be faced after one does this.

The society marginal cost can be increased with the pollution and then individual cost because of penalties and external forces.

Usually, the marginal effects tend to decrease when the customer decides to be on a specific one for a longer period.

For instance, if women owning a piece of the jewelry decides to buy another ring. So she purchases one or $ 100, but then she sees another one that she likes too, and now she is willing to spend another $ 100. Although she is convinced about purchasing $50, therefore the marginal benefit has now decreased to $50 for her.


Feel FREE to Bookmark below image ->

Producers must understand the marginal benefit of making an additional unit, which shows the

Hope you find the answer!