The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits
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Question:
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.
CPU GHz | Total Benefit | Marginal Benefit | Total Cost | Marginal Costs |
2.0 | $1,000 | $900 | ||
2.5 | $1,400 | $100 | ||
3.0 | $300 | $1,200 | ||
3.5 | $1,900 | $1,500 | ||
4.0 | $2,000 | $400 |
The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:
$400
$300
$200
$100
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
Posted Date: