Econ 301 Hmwk on Unconstrained Optimzation 1. Use the figure below to fill in the blanks in the following questions. TB, TC 375 total cost (dollars) Total benefit and 7.50 C A 50 75 100 25 A MB, MC d Marginal benefit and marginal cost (dollars) e 2.50 X 25 50 75 NB 225 19-4.50 Net benefit (dollars) NB A 25 50 75 Level of activitya. The values that belong in the blanks a -fin the figure on the previous page are: a. b. C. f. b. The optimal level of activity is units of activity where (TB, TC, MB, MC, NB) reaches its maximum value of $ C. Because TB is maximized at 100 units of activity, a line drawn tangent to the TB curve at 100 units of activity (not shown in the figure) has a slope of . NB at 100 units of activity is $ , which is identical to the value of NB at units of activity. Beyond 100 units, NB is (positive, rising, zero, negative). d. At 25 units of activity, (TB, TC, MB, MC, NB) is rising faster than (TB, TC, MB, MC, NB) is rising, and thus (TB, TC, MB, MC, NB) is rising. e. At 75 units of activity, decreasing the activity causes (TB, TC, MB, MC, NB) to fall faster than (TB, TC, MB, MC, NB) falls, and thus (TB, TC, MB, MC, NB) rises