The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. $\begin{array}{|c|c|c|c|c}
\hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \
\hline 2.0 & \$ 1,000 & & \$ 900 & \
\hline 2.5 & \$ 1,400 & & & \$ 100 \
\hline 3.0 & & \$ 300 & \$ 1,200 \
\hline 3.5 & \$ 1,900 & & \$ 1,500 & \
\hline 4.0 & \$ 2,000 & & & \$ 400 \
\hline
\end{array}$ The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:

Question

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.  $\begin{array}{|c|c|c|c|c}
\hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \
\hline 2.0 & \$ 1,000 & & \$ 900 & \
\hline 2.5 & \$ 1,400 & & & \$ 100 \
\hline 3.0 & & \$ 300 & \$ 1,200 \
\hline 3.5 & \$ 1,900 & & \$ 1,500 & \
\hline 4.0 & \$ 2,000 & & & \$ 400 \
\hline
\end{array}$ The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:

Quizplus · Accepted Answer

The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is the difference in total costs between these two speeds, which is $1,200 - $1,000 = $200.

The Following Accompanying Table Shows the Relationship Between the Speed of a Computer's