Refer to the table below. The marginal benefit of the 6^th unit of activity is: $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units of } \ \text { Activity } \end{array} & \begin{array} { c } \text { Total } \ \text { Cost } \end{array} & \begin{array} { c } \text { Total } \ \text { Benefit } \end{array} \ \hline 0 & \$ 0 & \$ 0 \ \hline 1 & \$ 2 & \$ 12 \ \hline 2 & \$ 6 & \$ 22 \ \hline 3 & \$ 12 & \$ 30 \ \hline 4 & \$ 20 & \$ 36 \ \hline 5 & \$ 30 & \$ 40 \ \hline 6 & \$ 42 & \$ 42 \ \hline 7 & \$ 56 & \$ 43 \ \hline \end{array}$$

Question

Quizplus · Accepted Answer

The marginal benefit is the additional benefit from consuming one more unit of the activity. It can be calculated by finding the change in total benefit from the previous unit to the current unit. From the table, we can see that the total benefit increases from $22 to $30 when the units of activity increase from 2 to 3. Therefore, the marginal benefit of the 3rd unit of activity is $8. Similarly, the total benefit increases from $36 to $40 when the units of activity increase from 4 to 5. Therefore, the marginal benefit of the 5th unit of activity is $4. Finally, the total benefit increases from $42 to $43 when the units of activity increase from 6 to 7. Therefore, the marginal benefit of the 7th unit of activity is $1. The highest marginal benefit is $8 for the 3rd unit of activity, but since that option is not given, the next best choice is to choose the unit with a marginal benefit of $2, which is the 6^th unit of activity. Therefore, the best choice is to consume 6^th units of activity.

Refer to the Table Below A)$1 B)$2 C)$4 D)$7

Refer to the Table Below A)$1
B)$2
C)$4
D)$7