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    Managerial Economics
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    Exam 3: Marginal Analysis for Optimal Decisions
  5. Question
    Use the Following Marginal Benefit and Marginal Cost Functions for Activity
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Use the Following Marginal Benefit and Marginal Cost Functions for Activity

Question 64

Question 64

Multiple Choice

Use the following marginal benefit and marginal cost functions for activity A: MB = 100 - 5A
MC = 20 + 3A
The optimal level of A is


A) 40
B) 30
C) 20
D) 10
E) 0

Correct Answer:

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