Question

3.

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHz Total Benefit Marginal Benefit Total Cost Marginal Costs 2.0 $1,000 $900 2.5 $1,400 $100 3.0 $300 $1,200 3.5 $1,900 $1,500 4.0 $2,000 $400 The total benefit of a 3.0GHz computer is: Multiple Choice $1,650. $1,700. $300. $900.

Answer 1

Ans: $1,700

Explanation:

CPU GHz	TB($)	MB($)	TC($)	MC($)
2.0	1000		900
2.5	1400	400	1000	100
3.0	1700	300	1200	200
3.5	1900	200	1500	300
4.0	2000	100	1900	400

The total benefit of a 3.0GHz computer = 1400 + 300 = 1700