What is the marginal net benefit associated with producing five units of the control variable,Q (identify point F 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) -100
B) -75
C) 0
D) 100

Question

Quizplus · Accepted Answer

The marginal net benefit (MNB) is calculated as the difference between marginal benefit (MB) and marginal cost (MC). For Q=5, MB=500 and MC=500, so MNB=500-500=0.

What Is the Marginal Net Benefit Associated with Producing Five