If B(X)represents the total benefit of activity X,then which of the following expressions best represents the marginal benefit of activity X?
A) B(X) - B(X - ∆X)
B) (B(X) - B(X - ∆X))/∆X
C) (B(X) - B(X - ∆X))/X
D) B(X - ∆X))/∆X

Question

Quizplus · Accepted Answer

The marginal benefit of activity X is the change in the total benefit resulting from a small change in the level of activity X. Therefore, we need to calculate the difference in the total benefit between the current level of activity X and a slightly lower level (X - ∆X), and then divide it by the change in activity (∆X). This is exactly what expression (B(X) - B(X - ∆X))/∆X represents.

If B(X)represents the Total Benefit of Activity X,then Which of the Following