The following table shows the relationship between the speed of a computer's CPU and the benefits and costs. Assume that all other features of the computer are the same, i.e., CPU speed is the only source of variation. Application of the cost-benefit principle would lead one to purchase a __________ computer because __________.
A) 900 Mhz; the total benefit exceeds the total cost
B) 700 Mhz; the marginal benefit is $500 and the marginal cost is $100
C) 600 Mhz; it is certainly fast enough
D) 800 Mhz; the marginal benefits and marginal costs are equal
Correct Answer:
Verified
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