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In Marginal Benefit and Marginal Cost Functions for Activity a Are

Question 26

Short Answer

In marginal benefit and marginal cost functions for activity A are
MB = 100 -0.04A
MC = 28 + 0.02A
a. The optimal level of A is _________ units at which MB = _________ and MC = ____________.
b. The 800th unit of A increases total benefit by $_________ and total cost by $_________ thereby _____________________ net benefit by $__________.
c. The 1,400th unit of A increases total benefit by $______ and total cost by $______ thereby _____________________ net benefit by $__________.

Correct Answer:

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a. 1200; $52; $52
b....

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