Consider an activity A that has the following marginal benefit (MB) and marginal cost (MC) functions: MB - 50 - 0.025A and MC 40 + 0.0254 and the following total benefit (TB) and total cost (TC) functions: TB 50A - 0.0125A and TC- 40A +0.01254. What is the optimal level of activity? Select one a.300 b400 c.100 d.500 200

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider an activity A that has the following marginal benefit (MB) and marginal cost (MC) functions:
MB = 50 - 0.025A and MC 40 + 0.0254
and the following total benefit (TB) and total cost (TC) functions:
TB 50A - 0.0125A and TC = 40A + 0.01254.
What is the optimal level of activity?
Select one:
a.300
b.400
c.100
d.500
e.200
Transcribed Image Text:Consider an activity A that has the following marginal benefit (MB) and marginal cost (MC) functions: MB = 50 - 0.025A and MC 40 + 0.0254 and the following total benefit (TB) and total cost (TC) functions: TB 50A - 0.0125A and TC = 40A + 0.01254. What is the optimal level of activity? Select one: a.300 b.400 c.100 d.500 e.200
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