Short Answer
Fill in the blanks in the following table. Then use the table to answer the questions:
a. If activity X is increased from 3 to 4 units, total benefit ___________ by $_________.
b. If X is increased from 3 to 4 units, total cost ___________ by $_________.
c. If X is decreased from 6 to 5 units, total benefit ___________ by $_________, and total cost ___________ by $_________. Thus, net benefit _____________.
d. The optimal level of activity is ___ units of activity X, and net benefit at the optimal level of X is $____________.
Correct Answer:

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a. increases; 60
b. ...View Answer
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Correct Answer:
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b. ...
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