Solved

Fill in the Blanks in the Following Table A If Activity X Is Increased from 3 to 4

Question 103

Short Answer

Fill in the blanks in the following table. Then use the table to answer the questions:
 Total  Total  Marginal  Marginal  Net X Benefit  Cost  Benefit  Cost  Benefit 00xxxx01200302100230350270445065525530650075\begin{array}{ccccc}&\text { Total } & \text { Total } & \text { Marginal } & \text { Marginal } & \text { Net } \\X&\text { Benefit } & \text { Cost } & \text { Benefit } & \text { Cost } & \text { Benefit }\\\hline0&-&0&xx&xx&0\\1&200&30&-&-&-&\\2&-&-&100&-&230\\3&-&-&-&50&270\\4&450&-&-&65&-\\5&-&255&30&-&-\\6&500&-&-&75&-\end{array}
a. If activity X is increased from 3 to 4 units, total benefit ___________ by $_________.
b. If X is increased from 3 to 4 units, total cost ___________ by $_________.
c. If X is decreased from 6 to 5 units, total benefit ___________ by $_________, and total cost ___________ by $_________. Thus, net benefit _____________.
d. The optimal level of activity is ___ units of activity X, and net benefit at the optimal level of X is $____________.

Correct Answer:

verifed

Verified

a. increases; 60
b. ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

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