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For Questions Using the Following Marginal Benefit and Marginal

Question 59

Multiple Choice

For questions using the following marginal benefit and marginal cost functions for activity A:
MB = 100 - 5A
MC = 20 + 3A
-The fifth unit of activity A will


A) increase net benefits by 75.
B) reduce net benefits by 35.
C) increase net benefits by 40.
D) decrease net benefits by 40.
E) reduce net benefits by 75.

Correct Answer:

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