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The graph measures level of activity on the horizontal axis and total benefit and cost in dollars on the vertical axis. Total benefit starts at
The graph measures level of activity on the horizontal axis and total benefit and cost in dollars on the vertical axis. Total benefit starts at the origin and increases at a decreasing rate until an activity level of 500, after which it decreases. Total cost starts at the origin and increases at an increasing rate. Total benefit exceeds total cost by $1000 at an activity level of 100; total benefit is $1500 and total cost is $500. Total benefit exceeds total cost by about $1250 at an activity level of 200; total benefit is $2500 and total cost is $1250. The gap between total benefit and total cost shrinks after an activity level of 200. Total benefit and total cost intersect at around $3750 at an activity level of 350.) At an activity level of 350
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