Complete the following table and answer the accompanying questions. Control Variable Q Total Benefits B(Q) Total Cost C(Q) Net Benefits Benefits N(Q) Marginal Benefit MB(Q) Marginal Cost MC(Q) Marginal Net Benefit MNB(Q) 100 1,200 950 210 60 101 1,400 70 102 1,590 80 103 1,770 90 104 1,940 100 105 2,100 110 106 2,250 120 107 2,390 130 108 2,520 140 109 2,640 150 110 2,750 160 a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this level of the variable? multiple choice Marginal cost is much smaller than marginal benefit. Marginal cost is slightly larger than marginal benefit. Marginal cost is slightly smaller than marginal benefit. Marginal cost is much larger than marginal benefit
Complete the following table and answer the accompanying questions. Control Variable Q Total Benefits B(Q) Total Cost C(Q) Net Benefits Benefits N(Q) Marginal Benefit MB(Q) Marginal Cost MC(Q) Marginal Net Benefit MNB(Q) 100 1,200 950 210 60 101 1,400 70 102 1,590 80 103 1,770 90 104 1,940 100 105 2,100 110 106 2,250 120 107 2,390 130 108 2,520 140 109 2,640 150 110 2,750 160 a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this level of the variable? multiple choice Marginal cost is much smaller than marginal benefit. Marginal cost is slightly larger than marginal benefit. Marginal cost is slightly smaller than marginal benefit. Marginal cost is much larger than marginal benefit
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Complete the following table and answer the accompanying questions.
Control Variable Q | Total Benefits B(Q) | Total Cost C(Q) | Net Benefits Benefits N(Q) | Marginal Benefit MB(Q) | Marginal Cost MC(Q) | Marginal Net Benefit MNB(Q) |
100 | 1,200 | 950 | 210 | 60 | ||
101 | 1,400 | 70 | ||||
102 | 1,590 | 80 | ||||
103 | 1,770 | 90 | ||||
104 | 1,940 | 100 | ||||
105 | 2,100 | 110 | ||||
106 | 2,250 | 120 | ||||
107 | 2,390 | 130 | ||||
108 | 2,520 | 140 | ||||
109 | 2,640 | 150 | ||||
110 | 2,750 | 160 |
a. At what level of the control variable are net benefits maximized?
b. What is the relation between marginal benefit and marginal cost at this level of the variable?
multiple choice
-
Marginal cost is much smaller than marginal benefit.
-
Marginal cost is slightly larger than marginal benefit.
-
Marginal cost is slightly smaller than marginal benefit.
-
Marginal cost is much larger than marginal benefit
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