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

question 58

Multiple Choice

The following table shows the relationship between the speed of a computer's CPU and the benefits and costs. Assume that all other features of the computer are the same, i.e., CPU speed is the only source of variation. $$\begin{array} { | l | l | l | l | l | } \hline \text { CPU Mhz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Cost } \\\hline 600 & \$ 1,000 & & \$ 900 & \\\hline 700 & \$ 1,500 & & & \$ 100 \\\hline 800 & & \$ 400 & \$ 1,400 & \\\hline 900 & \$ 2,200 & & \$ 1,900 & \\\hline 1,000 & \$ 2,400 & & & \$ 600 \\\hline\end{array}$$ The marginal cost of upgrading from a 700 to an 800 Mhz computer is:

• A) $500.
• B) $400.
• C) $200.
• D) $100.

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Definitions:

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.

Activity Measure

An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.

Patient-visits

A measure used in healthcare to quantify the number of visits or interactions patients have with healthcare providers.

Customers Served

The number or segment of clients who receive services or purchase products from a business within a given time frame.