Question

Refer to the accompanying table below According to the Cost-Benefit Principle, how many units of this activity should be carried out?
media%2Fa1d%2Fa1df5087-91c2-431e-8074-98
0 0
Add a comment Improve this question Transcribed image text
Answer #1

According to the cost Benefit analysis, at the equilibrium quantity or activity , net benefit is maximised

Net benefit = total benefit - total cost

Thus at the activity = 3,

Net benefit = 30-12 = 18, which is maximum

Activity net benefit
0 0
1 10
2 16
3 18, Maximum
4 16
5 10
6 0

7 . -7

Add a comment
Know the answer?
Add Answer to:
Refer to the accompanying table below According to the Cost-Benefit Principle, how many units of this...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT