What Is the Net Benefit Associated with Producing Two Units

question 82

Multiple Choice

What is the net benefit associated with producing two units of the control variable,Q (identify point C in the table) ?
$\begin{array}{|c|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Control } \\\text { Variable }\end{array} & \begin{array}{c}\text { Total } \\\text { Benefits }\end{array} & \begin{array}{c}\text { Total } \\\text { Costs }\end{array} & \begin{array}{c}\text { Net } \\\text { Benefits }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Benefit }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Net Benefit }\end{array} \\\hline Q & B(Q) & C(Q) & N(Q) & \boldsymbol{M}(Q) & \boldsymbol{M}(Q) & M N B(Q) \\\hline 0 & 0 & 0 & 0 & -- & -- & -- \\\hline 1 & 900 & 100 & 800 & 900 & 100 & 800 \\\hline 2 & 1,700 & 300 & C & 800 & 200 & 600 \\\hline 3 & 2,400 & 600 & 1,800 & 700 & E & 400 \\\hline 4 & A & 1,000 & 2,000 & 600 & 400 & 200 \\\hline 5 & 3,500 & 1,500 & 2,000 & 500 & 500 & F \\\hline 6 & 3,900 & 2,100 & 1,800 & D & 600 & -200 \\\hline 7 & 4,200 & 2,800 & 1,400 & 300 & 700 & -400 \\\hline 8 & 4,400 & B & 800 & 200 & 800 & -600 \\\hline 9 & 4,500 & 4,500 & 0 & 100 & 900 & -800 \\\hline 10 & 4,500 & 5,500 & -1,000 & 0 & 1,000 & -1000 \\\hline\end{array}$

• A) 600
• B) 800
• C) 1,200
• D) 1,400

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Definitions:

Ultimatum Game

The ultimatum game is a game theory experiment where two players decide how to divide a sum of money; one proposes the division and the other can accept or reject it, where rejection means neither gets anything.

Market Transactions

The buying and selling activities that take place in the marketplace between buyers and sellers.

Cooperation

The process of groups or individuals working together towards a common goal, often leading to mutual benefits.

Better Products

This denotes products that are considered superior in quality or performance compared to others.