Suppose That the Slope of a Line Tangent to the Total

question 66

Multiple Choice

Suppose that the slope of a line tangent to the total cost curve at point X is equal to the slope of a line tangent to the total benefit curve at point X,then:

• A) net benefit would be increased by reducing the amount of the activity.
• B) net benefit would be decreased by reducing the amount of the activity.
• C) net benefit would be increased by increasing the amount of the activity.
• D) net benefit is maximized.

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