Question: CHAPTER 3 Marginal Analysis for Optimal Decisions 111 6. Fill in the blanks in the following table to answer the questions below. TB TC NB

CHAPTER 3 Marginal Analysis for Optimal Decisions 111 6. Fill in

CHAPTER 3 Marginal Analysis for Optimal Decisions 111 6. Fill in the blanks in the following table to answer the questions below. TB TC NB MB MC OID $ 0 $. 27 $35 30 auAWN - 51 60 a. What is the optimal level of activity in the table above? b. What is the value of net benefit at the optimal level of activity? Can net benefit be increased by moving to any other level of A? Explain. c. Using the numerical values in the table, comment on the statement, "The optimal level of activity occurs where marginal benefit is closest to marginal cost.&quot

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Please assist with answering the attached questions. Chapter 03 - Marginal Analysis for Optimal Decisions Chapter 3: MARGINAL ANALYSIS FOR OPTIMAL DECISIONS Net Benefit = Total Benefit - Total Cost...

Now suppose the decision maker in Technical Problem 6 faces a fixed cost of $24. Fill in the blanks in the following table to answer the questions below. AC is the average cost per unit of activity....

Answer the following questions thoroughly. 1. Recall from Ch. 3 that Net Benefit (NB) = Total Benefit (TB) - Total Cost (TC) while Marginal Benefit (MB) = the change () in TB/ a change () in activity...

Net Benefit (NB) = Total Benefit (TB) - Total Cost (TC) while Marginal Benefit (MB) = the change () in TB/ a change () in activity (A) and Marginal Cost (MC) = the change () in TC/ a change () in...

1. Fill in the blanks in the following table to answer the questions below. (1) (2) (3) (4) (5) (6) Level of Total benefit Total cost Net benefit Marginal Marginal of activity of activity of activity...

Fill in the blanks in the following table to answer the questions below. a. What is the optimal level of activity in the table above?b. What is the value of net benefit at the optimal level of...

answer the following question #6,#10 throughout stage II. This phenomenon is so frequently observed that it is called Figure 6-2 shows that the marginal physical product of labor use low-the law of...

Jim is single, aged 67, has just retired and wants financial planning guidance. His assets are listed as follows: Required: 1. Explain Jim's options for Centrelink and calculate level of...

Marini has just inherited RM 100,000 and has decided to invest RM 70,000 in common stocks. Her objective is to build up as much capital as she can over the next 15 years, and she willing to tolerate...

6. Which of the following assigns the number 0 to each element in a two-row, four-column Integer array named intSums? a. For intRow As Integer = 0 To 1 For intCol As Integer = 0 To 3 intSums(intRow,...

Brittany purchased a building for $500,000 on January 1, 2008. The purchase price does not include land. Calculate the cost recovery for 2008 and 2016 if the real property is: a. Residential real...

On January 1, 2008, Borstad Company purchased equipment for $1,180,000. It is depreciating the equipment over 25 years using the straight-line method and a zero residual value. Late in 2013, because...

An intangible asset cost $300,000 on January 1, 2013. On January 1, 2014, the asset was evaluated to determine whether it was impaired. As of January 1, 2014, the asset was expected to generate...

Michael is the sole proprietor of a small business. In June 2016 his business income is $12,000 before consideration of any 179 deduction. He spends $245,000 on furniture and equipment in 2016. If...

On April 1, 2013, Brandoni Company has a piece of machinery with a cost of $100,000 and accumulated depreciation of $75,000. On April 1, Brandoni decided to sell the machine within one year. As of...

What do many organizations use to schedule and coordinate changes for information systems? Question 2 3 options: A . Impact analysis B . Backout plans C . Maintenance windows D . Version control

9. Discuss the statement: If the actors mainly act on the basis of a view of human-ity as driven by self-interest, and incorporate this idea into their models, they may end up with their premises...

5. What does it mean when we say the evaluation comes before the presenta-tion?.

1. Discuss the following statements: a) Predetermined is not the same thing as predictable. b) When we are aware of the consequences of our behaviour, we can change our behaviour. c) What we know is...