Answer the Question on the Basis of the Following Table

question 86

Multiple Choice

Answer the question on the basis of the following table that shows the total costs and total benefits facing a city of five different potential baseball stadiums of increasing size.All figures are in millions of dollars. $\begin{array}{l}\begin{array}{ccc}\underline{\text { Stadium }}&\underline{\text { Total Cost }}&\underline{\text { Total Benefit }}\\\text { A } & \$ 80 & \$ 140 \\\text { B } & 100 & 200 \\\text { C } & 130 & 250 \\\text { D } & 165 & 290 \\\text { E } & 220 & 300\end{array}\end{array}$ Refer to the table.The marginal cost and marginal benefit of stadium B (relative to A) are:

• A) $20 million and $50 million,respectively.
• B) $100 million and $200 million,respectively.
• C) $30 million and $50 million,respectively.
• D) $20 million and $60 million,respectively.

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Definitions:

NPV

Net Present Value, a calculation used to assess the profitability of an investment, representing the difference between the present value of cash inflows and outflows over a period of time.

Market Size

An estimation of the total volume of goods or services that is available for purchase within a specific market.

Crystal Ball

A software package used for risk analysis and simulation in Microsoft Excel.

Extract Data

The process of retrieving data from a database, document, or file for further use or analysis.