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

question 87

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 benefit of upgrading from a 600 Mhz computer to a 700 Mhz computer is:

• A)$1,500.
• B)$500.
• C)$50.
• D)$5.

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Definitions:

Subsidiary

A company controlled by another company, often referred to as its parent company.

Interest Rate Parity

A theory in financial economics that suggests the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and the spot exchange rate.

Forward Rate

The agreed-upon price for a financial transaction that will occur at a future date, used primarily in foreign exchange and interest rate markets.

Spot Rate

The present market rate at which a specific asset, like a currency, commodity, or security, is available for purchase or sale with immediate delivery.