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Marginal benefit is defined as:

a. The net gain from a particular level of activity,

b. The additional benefit gained from the last unit of activity,

c. The difference between total benefits and total costs of a particular level of activity,

d. The difference between variable costs and fixed costs.

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The correct answer is b. The additional benefit gained from the last unit of activity,

In other words, the marginal benefit answers the following question for a firm: "What can we potentially gain if we produce one more unit?"

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