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 &400Choosing a 3.5GHz computer would be irrational because:
A. it is impossible to tell the difference compared to a 3.0GHz computer.
B. its marginal benefit is less than its marginal cost.
C. its marginal benefit is equal to its marginal cost.
D. its marginal benefit is greater than its marginal cost.
Answer: B
You might also like to view...
In the figure above, if the government gives a voucher equal to $3,000 per year to each college student, how many students will be accepted?
A) 8 million per year B) 12 million per year C) 10 million per year D) 14 million per year
Two products are substitutes if:
A. an increase in the price of one causes buyers to demand less of the other. B. an increase in the price of one causes buyers to demand more of the other. C. a decrease in the price of one causes buyers to demand more of the other. D. individuals consume the goods together.