Activity A has the following marginal (MB) and marginal cost (MC) functions:
MB = 2,500 - 20A
MC = 500 + 30A
where MB and MC are measured in dollars.
-The 10^th unit of the activity increases total benefit by $_________ and increases total cost by $_________. Since marginal benefit is _________ (greater, less) than marginal cost, adding the 10^th unit of activity _________ (increases, decreases) net benefit by $_________.

Question

Quizplus · Accepted Answer

The Answer of Activity A has the following marginal (MB) and marginal cost (MC) functions: MB = 2,500 - 20A MC = 500 + 30A where MB and MC are measured in dollars. -The 10^th unit of the activity increases total benefit by $_________ and increases total cost by $_________. Since marginal benefit is _________ (greater, less) than marginal cost, adding the 10^th unit of activity _________ (increases, decreases) net benefit by $_________.

Activity a Has the Following Marginal (MB) and Marginal Cost