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  2. Topic
    Business
  3. Study Set
    Managerial economics
  4. Exam
    Exam 3: Marginal Analysis for Optimal Decision Making
  5. Question
    The Marginal Benefit and Marginal Cost Functions for Activity a Are
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The Marginal Benefit and Marginal Cost Functions for Activity a Are

Question 8

Question 8

Short Answer

The marginal benefit and marginal cost functions for activity A are
MB = 100 - 0.04A
MC = 28 + 0.02A
-The optimal level of A is _________ units at which MB = _________ and MC = ____________.

Correct Answer:

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