In marginal benefit and marginal cost functions for activity A are
MB = 100 -0.04A
MC = 28 + 0.02A
a. The optimal level of A is _________ units at which MB = _________ and MC = ____________.
b. The 800^th unit of A increases total benefit by $_________ and total cost by $_________ thereby _____________________ net benefit by $__________.
c. The 1,400^th unit of A increases total benefit by $______ and total cost by $______ thereby _____________________ net benefit by $__________.

Question

Quizplus · Accepted Answer

The Answer of In marginal benefit and marginal cost functions for activity A are MB = 100 -0.04A MC = 28 + 0.02A a. The optimal level of A is _________ units at which MB = _________ and MC = ____________. b. The 800^th unit of A increases total benefit by $_________ and total cost by $_________ thereby _____________________ net benefit by $__________. c. The 1,400^th unit of A increases total benefit by $______ and total cost by $______ thereby _____________________ net benefit by $__________.

In Marginal Benefit and Marginal Cost Functions for Activity a Are