Consider an activity A that has the following marginal benefit (MB) and marginal cost (MC) functions: MB - 50 - 0.025A and MC 40 + 0.0254 and the following total benefit (TB) and total cost (TC) functions: TB 50A - 0.0125A and TC- 40A +0.01254. What is the optimal level of activity? Select one a.300 b400 c.100 d.500 200

Consider an activity A that has the following marginal benefit (MB) and marginal cost (MC) functions: MB - 50 - 0.025A and MC 40 + 0.0254 and the following total benefit (TB) and total cost (TC) functions: TB 50A - 0.0125A and TC- 40A +0.01254. What is the optimal level of activity? Select one a.300 b400 c.100 d.500 200

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 19P

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