Question
I have a question related to my Economics Homework, I need a fully detailed explanation, not just the answer. Please give me a logical step-by-step
I have a question related to my Economics Homework, I need a fully detailed explanation, not just the answer. Please give me a logical step-by-step
breakdown, because I am having a hard time understanding this problem below - Many Thanks.
Refer to the following table:
Level of Activity Total Benefit Total Cost Net Benefit Marginal Benefit Marginal Cost
0 ______ 0 0 xx xx
1 100 50 _____ ______ ______
2 ______ ______ 100 150 ______
3 ______ ______ 115 _____ 160
4 605 ______ _____ _____ 179
5 ______ 674 _____ 120 _____
6 825 ______ _____ _____ 190
The optimal level of activity is:
A. 2
B. 3
C. 4
D. 5
E. There is no optimal level in this case because marginal benefit does not equal marginal cost at any activity level.
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