Multiple Choice
Refer to the figure below,which shows marginal benefits MB) and marginal cost MC) of activity A: If the decision maker is choosing 200 units of activity A,
A) this level maximizes net benefits.
B) the activity could be reduced by one unit and net benefits will increase by $10.
C) the activity could be increased by one unit and net benefits will increase by $10.
D) the activity could be increased by one unit and net benefits will increase by $25.
E) the activity could be reduced by one unit and net benefits will increase by $15.
Correct Answer:

Verified
Correct Answer:
Verified
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