Question

Suppose the total benefit of watching 1 baseball game is 100, the total benefit of watching 2 games is 120, and the total benefit of watching 3 games is 125. In this case, the marginal benefit of watching the 3rd game is:A 5B 125C 41.67D 375

Answer 1

Answer:

A. 5

Step-by-step explanation:

The marginal benefit of an article, $B_m$ is calculated as:

$B_m=\frac{DB_t}{DQ}$

Where $DB_t$ is the change in the total benefit of the article, and $DQ$ is the change in the units of the article.

If we want to know the marginal benefit of watching the 3rd game, we need to use the information of total benefit of watching 2 games and 3 games.

In this case, the total benefit of watching 2 games is 120 and the total benefit of watching 3 games is 125, so $DB_t$ and $DQ$ are equal to:

$DB_t=125-120=5$

$DQ = 3 - 2 = 1$

Then, the marginal benefit of watching the third game is:

$B_m=\frac{5}{1}=5$