The following 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.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:
A. $400.
B. $1,400.
C. $1,000.
D. $100.
Answer: A
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In 1906, the Hepburn Act
(a) Required the federal government to set "fair rates" for customers regardless of geographical location. (b) Required the federal government to set rates that promised a positive rate of return to railroads. (c) Granted the power to set maximum rates in the railroad industry to the federal government. (d) Granted the power to set maximum rates in the railroad industry to the leading railroad tycoons.
A perfectly competitive firm sells its output for $100 per unit and marginal cost is $100 per unit. To maximize short-run profit, the firm should:
a. increase output. b. decrease output. c. maintain its current output. d. shut down.
If a firm is making zero economic profit, it
a. will be forced to shutdown and leave the market. b. will also generally be making zero accounting profit. c. is doing as well as typical firms in other markets. d. will not survive in the long run.
What is likely to happen to resource demand in the next few decades?
What will be an ideal response?