Q:52

ion 52 Guelph Amber University has found it necessary to minimise the parking lot costs. The university is now considering several alternative places for parking. This table shows the expected annua Itemnatives. You may complete the columns regarding MC, MB and NB. (Figures in thousand dollars) Parking place Total cost Total benefits |Marginal cost per year Marginal per year Net benefits (MC) benefits (NB) (MB) Lot-1-East side 132 136 Lot-2-West side 146 152 Lot-3-North side 162 180 Lot-4-South side 180 204 Lot -5- First floor 200 224 Lot-6- Underground 246 242 An Optimal parking place is O A Lot-2-West side because of lowest marginal cost O B. Lot-4-South side because the marginal benefits are equal to net benefits O C. Lot-5-First floor because the marginal cost equals marginal benefits and the net benefits are the highest O D. Lot-3-North side because the marginal benefits are the maximum Moving to another question will save this response