To Maximize Net Benefits in the Table,it Is Most Appropriate
Question 53
Question 53
Multiple Choice
To maximize net benefits in the table,it is most appropriate to use: Control Variable Q012345678910 Total Benefits B(Q) 09001,7002,400A3,5003,9004,2004,4004,5004,500 Total Costs C(Q) 01003006001,0001,5002,1002,800B4,5005,500 Net Benefits N(Q) 0800C1,8002,0002,0001,8001,4008000−1,000 Marginal Benefit M(Q) −−900800700600500D3002001000 Marginal Cost M(Q) −−100200E4005006007008009001,000 Marginal Net Benefit MNB(Q) −−800600400200F−200−400−600−800−1000
A) four units of the control variable, since the marginal benefit exceeds marginal cost. B) six units of the control variable, since the marginal cost exceeds marginal benefit. C) five units of the control variable, since net marginal benefits are zero. D) None of the statements associated with this question are correct.
Correct Answer:
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