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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

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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."

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