Short Answer
Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions.
a. Net benefit is maximized when _________ units of A are chosen; marginal benefit is $_________ and marginal cost is $_________.
b. If 300 units of A are chosen, net benefit will increase by $_________ if one _________ unit of A is used.
c. If 100 units of A are chosen, net benefit will increase by $_________ if one _________ unit of A is chosen.
Correct Answer:

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a. 200; $2...View Answer
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