Use the Following Marginal Benefit and Marginal Cost Functions for Activity

question 40

Multiple Choice

Use the following marginal benefit and marginal cost functions for activity A: MB = 100 - 5A
MC = 20 + 3A
The fifth unit of activity A will

• A)increase net benefits by 75.
• B)reduce net benefits by 35.
• C)increase net benefits by 40.
• D)decrease net benefits by 40.
• E)reduce net benefits by 75.

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