The Following Accompanying Table Shows the Relationship Between the Speed of a Computer's

question 129

Multiple Choice

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation) , and only the CPU speeds listed below are available for purchase.  
$\begin{array}{|c|c|c|c|c}\hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \\\hline 2.0 & \$ 1,000 & & \$ 900 & \\\hline 2.5 & \$ 1,400 & & & \$ 100 \\\hline 3.0 & & \$ 300 & \$ 1,200 \\\hline 3.5 & \$ 1,900 & & \$ 1,500 & \\\hline 4.0 & \$ 2,000 & & & \$ 400 \\\hline\end{array}$  
The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:

• A)$1,400.
• B)$1,000.
• C)$400.
• D)$100.

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Definitions:

Distributorship

An arrangement in which a manufacturer or another supplier grants a business the right to sell its products.

Manufactured

The process of converting raw materials into finished goods through the use of equipment, labor, and processes.

Business Trust

A business organization governed by a group of trustees who operate the trust for beneficiaries.

Trustees

Trustees are individuals or organizations appointed to manage assets on behalf of others, typically in a trust fund.