-At what level of activity is net benefit maximized, and what is net benefit at that level?
A) 1 unit, and net benefit equals 70 points.
B) 2 units, and net benefit equals 100 points.
C) 3 units, and net benefit equals 90 points.
D) 4 units, and net benefit equals 130 points.

Question

-At what level of activity is net benefit maximized, and what is net benefit at that level?
A) 1 unit, and net benefit equals 70 points. 
B) 2 units, and net benefit equals 100 points. 
C) 3 units, and net benefit equals 90 points. 
D) 4 units, and net benefit equals 130 points.

Quizplus · Accepted Answer

Net benefit is maximized at the level of activity where the difference between total benefits and total costs is the greatest. In this case, 2 units with a net benefit of 100 points represents the highest net benefit among the provided options.

-At What Level of Activity Is Net Benefit Maximized, and What