Thank you very much. You did an excellent job on the power point presentation. Thanks!
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 $__________.
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