Use the graph below to answer the following questions: 

a) At 200 units of the activity, marginal benefit is $__________ and marginal cost is $__________. 

b) Adding the 200th unit of the activity causes net benefit to __________ (increase, decrease) by $__________. 

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 $__________. 

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:

12 MC 10 8 6 MB 200 400 600 800 Level of activity (A) 4) 2. Marginal benefit and marginal cost (dollars) 12 MC 10 8 6 MB 200 400 600 800 Level of activity (A) 4) 2. Marginal benefit and marginal cost (dollars)

Answer rating: 100% (QA)

At 200 units of the activity marginal benefit is 8 and marginal cost is 4 Adding the 2... View the full answer