Use the graph below to answer the following questions:

a. At 60 units of the activity, marginal benefit is $___________ and marginal cost is $___________.b. Adding the 60th unit of the activity causes net benefit to ___________(increase, decrease) by $___________.c. At 220 units of the activity, marginal benefit is $___________ and marginal cost is $___________.d. Subtracting the 220th unit of the activity causes net benefit to___________ (increase, decrease) by $___________.e. The optimal level of the activity is___________ units. At the optimal level of the activity, marginal benefit is $___________ and marginal cost is $___________.

Transcribed Image Text:

MC 10 5 2 MB 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 Level of activity 4. 3. Marginal benefit and marginal cost (dollars)