Optimal level of activity in the table above

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Reference no: EM131357612

Fill in the blanks in the following table to answer the questions below.

A        TB          TC        NB         MB         MC

0         $0          $__        $0

1            ___          ___        27         35            $____

2           65           ____       ___         ___           $_____

3            85           30        ___         ____          ______

4           ____           ____      51          ____           14

5          ____           60        ____          8             ____

6          ____            ____       ____         5            20

a. What is the optimal level of activity in the table above?

b. What is the value of net benefit at the optimal level of activity? Can net benefit be increased by moving to any other level of A? Explain

c. Using the numerical values in the table, comment on the statement, "The optimal level of activity occurs where marginal benefit is closet to marginal cost."

Reference no: EM131357612

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