Use the following for questions 55-59.
Exhibit: Marginal Benefit, Marginal Cost, and Net Benefit

-(Exhibit: Marginal Benefit, Marginal Cost, and Net Benefit) In Panel (b) at activity level E, _______ , and in Panel (c) at activity level J, _______ .

Question

Use the following for questions 55-59.
Exhibit: Marginal Benefit, Marginal Cost, and Net Benefit
 
-(Exhibit: Marginal Benefit, Marginal Cost, and Net Benefit) In Panel (b) at activity level E, _______ , and in Panel (c) at activity level J, _______ .
A) MB < MC; MB < MC 
B) MB > MC; MB < MC 
C) net benefit is ABGF; net benefit is ABC. 
D) there is no deadweight loss; deadweight loss is CHI

Quizplus · Accepted Answer

At activity level E, the marginal benefit (MB) is greater than the marginal cost (MC), and at activity level J, the marginal benefit (MB) is less than the marginal cost (MC).

Use the Following for Questions 55-59