I. Marginal benefits and marginal costs
A. Capture the way total benefits and total costs change as the amount of an activity changes just a little bit
B. Are constant, regardless of the amount of an activity that is pursued
C. Tend to increase as a decision maker does more of an activity
D. Tend to increase as a decision maker does more of an activity
II. The marginal benefit of an action
A. Equals the additional benefit produced by extra units of X and tends to decrease as X increases
B. Equals the additional benefit produced by the total units of X and tends to increase as X increases
C. Equals the additional benefit produced by the total units of X and tends to decrease as X increases
D. Equals the additional benefit produced by extra units of X and tends to increase as X increases