The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15. How many times a month should you get your car washed?

Question

The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15.  How many times a month should you get your car washed?

Quizplus · Accepted Answer

The marginal cost of a car wash is always $15. The marginal benefit of the 1^st car wash is $20, the marginal benefit of 2^ndis $16, the marginal benefit of the 3^rd is $12, the marginal benefit of the 4^this $8, and the marginal benefit of the 5^th is $4. Thus, marginal benefit is less than marginal cost after the second car wash.

The Table Below Shows the Relationship Between the Number of Times