1 .In a constrained minimization problem, P_A= $500, P_B= $100, MB_A= 50, and MB_B= 60.If one unit of A is taken away, how many units of B must be added to keep total benefits constant?

Is it:

a. 5/6

b. 6/5

c. 5/3

2 .In an unconstrained maximization problem, the optimal level of activity occurs at the activity level for which the rate of change in _____ equals the rate of change in _____.

Is it:

a. Net benefit; net cost

b. Total benefit; total cost

c. Average benefit; average cost