Refer to the table below. Behaving as a "rational optimizer," how many units of this activity should be carried out? Units of Total Total Activity Cost Benefit 0 $0 $0 $2 $12 $6 $22 $12 $30 $20 $36 $30 $40 $42 $42 $56 $43 1 2 3 4 5 6 7 A. 2 B. 3 C. 4 D. 5 5 6

Refer to the table below. Behaving as a "rational optimizer," how many units of this activity should be carried out? Units of Total Total Activity Cost Benefit 0 $0 $0 $2 $12 $6 $22 $12 $30 $20 $36 $30 $40 $42 $42 $56 $43 1 2 3 4 5 6 7 A. 2 B. 3 C. 4 D. 5 5 6

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Refer to the table below. Behaving as a "rational optimizer," how many units of
this activity should be carried out?
Units of Total Total
Activity Cost Benefit
0
$0
$0
$2
$12
$6
$22
$12
$30
$20 $36
$30 $40
$42 $42
$56
$43
1
2
3
4
5
6
7
A. 2
B. 3
C. 4
D. 5
E. 6

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Step 1: Dissecting Rational Optimization in Economics

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Step 2: Selecting the Optimal Activity Level

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Step 3: Performing the Analysis

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