Solved

A Basketball Manufacturer Is Considering a Number of Options for Its

Question 1

Multiple Choice

A basketball manufacturer is considering a number of options for its new factory.Given the following costs and benefits of the four different factory configurations,what are the marginal costs and benefits of the Extra Large configuration relative to the Large configuration?
........................Total Cost......Total Benefit
Configuration A(Small) ..................$45,000.........70,000
Configuration B(Medium) ...............120,000.......170,000
Configuration C (Large) ..............240,000.......300,000
Configuration D (Extra Large) .........400,000.......420,000


A) Marginal cost of $160,000 and marginal benefit of $120,000.
B) Marginal cost of $400,000 and marginal benefit of $420,000.
C) Marginal cost of $120,000 and marginal benefit of $120,000.
D) Marginal cost of $160,000 and marginal benefit of $220,000.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents