five units of the control variable, since net marginal benefits are zero. None o
ID: 1161808 • Letter: F
Question
five units of the control variable, since net marginal benefits are zero.
None of the statements associated with this question are correct.
six units of the control variable, since the marginal cost exceeds marginal benefit.
four units of the control variable, since the marginal benefit exceeds marginal cost.
Total Costs C(O Total Control VariableBenefits Net Benefits MarginalMarginalMarginal Cost MCIO Benefit Net Benefit B(O MNBO 900 1.700 2.400 100 300 600 ,000 1,500 2.100 2.800 900 800 700 600 500 100 200 800 600 400 200 800 3.500 3.900 4.200 4.400 4.500 4,500 1,800 2,000 2,000 1,800 1,400 800 400 500 600 700 800 900 1,000 -200 -400 -600 800 1000 300 200 100 4.500 5,500 10 1.000Explanation / Answer
Correct Answer:
A.Five units of the control variable, since net marginal benefits are zero.
Explanation:
At five units of control variable, the marginal benefit (MR) = Marginal cost = 500
At this level of output, the net profit is maximized that is 2000.
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