2. Working with Numbers and Graphs Q2

The following graph depicts an orange marginal-cost curve (labeled MC) associated with a constant marginal cost of reading of $15 per hour. The graph also depicts a blue marginal-benefit curve (labeled MB) for reading.

Question 1: On the following graph, use the black point (plus symbol) to indicate the efficient point corresponding to an amount of reading at which the net benefits from reading are maximized.

30 27 MC 24 21 18 Initial Efficient Point MC MARGINAL COST, MARGINAL BENEFIT ($ per hour of reading per week) 15 12 New Efficient Point 9 MB 0 0 10 20 30 40 50 60 70 80 90 100 READING (Hours per week)