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-The Optimal Level of Activity Is:
A) 2
B) 3

Question 97

Multiple Choice


 Level of  Total  Total  Marginal  Marginal  Net  Activit  Beneft  Cost  Benefit  Cost  Benefit 00xxxx0110050215001003160115460517956741206825190\begin{array}{cccccc}\text { Level of } & \text { Total } & \text { Total } & \text { Marginal } & \text { Marginal } & \text { Net } \\\text { Activit } & \text { Beneft } & \text { Cost } & \text { Benefit } & \text { Cost } & \text { Benefit }\\\hline0&-&0&xx&xx&0\\1&100&50&-&-&-\\2&-&-&150&0&100\\3&-&-&-&160&115\\4&605&-&-&179&-\\5&-&674&120&-&-\\6&825&-&-&190&-\end{array}
-The optimal level of activity is:


A) 2
B) 3
C) 4
D) 5
E) There is no optimal level in this case because marginal benefit does not equal marginal cost at any of the activity levels.

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