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Q5f The following table shows Alex's total benefit (in $ terms) from consuming gasoline in any given week. Gallons per week Total Benefit ($) O
Q5f The following table shows Alex's total benefit (in $ terms) from consuming gasoline in any given week. Gallons per week Total Benefit ($) O O 8 2 15 3 21 4 26 Suppose that gasoline costs $2 per gallon. From the given values, what is the optimal amount of gasoline consumption for Alex? 1) Alex should not consume any gasoline. 2) Alex should consume 1 gallon of gasoline, as that amount yields the maximum marginal net benefit. 3) Alex should consume 4 gallons of gasoline, since every gallon up to 4 gallons yields a positive marginal net benefit. 4) None of the above
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