c) At 700 units of the activity, marginal benefit is $__________ and marginal cost is $__________.d) Subtracting the 700th unit of the activity causes net benefit to __________ (increase, decrease) by $__________. 1. Use the graph below to answer the following questions:Marginal benefit and marginal cost (dollars)1210N0T200400Level of activity (A)600MC800MB

The equilibrium is set up where the MC is equal to the Marginal benefit. The output above this…

Answered: ) At 700 units of the activity,…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 22RQ: What are diminishing marginal returns as they relate to costs?

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c) At 700 units of the activity, marginal benefit is $__________ and marginal cost is $__________. d) Subtracting the 700th unit of the activity causes net benefit to __________ (increase, decrease) by $__________.

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