Refer to the table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out? $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Units of } \
\text { Activity }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Benefit }
\end{array} \
\hline 0 & \$ 0 & \$ 0 \
\hline 1 & \$ 2 & \$ 12 \
\hline 2 & \$ 6 & \$ 22 \
\hline 3 & \$ 12 & \$ 30 \
\hline 4 & \$ 20 & \$ 36 \
\hline 5 & \$ 30 & \$ 40 \
\hline 6 & \$ 42 & \$ 42 \
\hline 7 & \$ 56 & \$ 43 \
\hline
\end{array}$$

Question

Refer to the table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out? $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Units of } \
\text { Activity }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Benefit }
\end{array} \
\hline 0 & \$ 0 & \$ 0 \
\hline 1 & \$ 2 & \$ 12 \
\hline 2 & \$ 6 & \$ 22 \
\hline 3 & \$ 12 & \$ 30 \
\hline 4 & \$ 20 & \$ 36 \
\hline 5 & \$ 30 & \$ 40 \
\hline 6 & \$ 42 & \$ 42 \
\hline 7 & \$ 56 & \$ 43 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Cost-Benefit Principle states that an activity should be carried out up to the point where the marginal cost equals the marginal benefit. In this case, the marginal cost is $6 and the marginal benefit is $8, so the activity should be carried out up to 3 units.

Refer to the Table Below A)2 B)3 C)4 D)5

Refer to the Table Below A)2
B)3
C)4
D)5