Refer to the Following Figure, Which Shows Marginal Benefits (MB)

Multiple Choice

Refer to the following figure, which shows marginal benefits (MB) and marginal cost (MC) of activity A.

-If the decision maker is choosing 400 units of activity A,

A) this level maximizes net benefits.
B) the activity could be reduced by one unit and net benefits will increase by $10.
C) the activity could be reduced by one unit and net benefits will rise by $25.
D) the activity could be increased by one unit and net benefits will increase by $15.
E) the activity could be reduced by one unit and net benefits would decrease by $10.