When 5 Units of an Activity Are Chosen,the Average Benefits

question 177

Multiple Choice

When 5 units of an activity are chosen,the average benefits are $13 and the average costs are $12.One can infer that

• A) more units should be chosen.
• B) 5 is the optimal amount.
• C) fewer units should be chosen.
• D) total benefits are less than total costs.
• E) insufficient information is available to judge if 5 units are optimal or not.