The following 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. The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:

Question

The following 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.  The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:

Quizplus · Accepted Answer

Going from a 2.0GHz to a 2.5GHz computer increases total benefit from $1,000 to $1,400, so the marginal benefit is $400.

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