Suppose that the slope of a line tangent to the total cost curve at point X is steeper than the slope of a line tangent to the total benefit curve at point X,then
A) Net benefit would be increased be reducing the amount of the activity
B) Net benefit would be decreased be reducing the amount of the activity
C) Net benefit would be increased be increasing the amount of the activity
D) Net benefit would be maximized

Question

Quizplus · Accepted Answer

The slope of the tangent line to a curve at any point represents the rate of change of the function at that point. If the slope of the tangent to the total cost curve is steeper than that of the total benefit curve, it means that costs are increasing at a faster rate than benefits at point X. Therefore, reducing the amount of the activity would decrease costs more rapidly than it would decrease benefits, leading to an increase in net benefit.

Suppose That the Slope of a Line Tangent to the Total