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Emmanuel enjoys growing zucchini in his garden and then selling his produce at the local farmers' market. The table below shows his marginal benefit and marginal cost for each hour he spends in his garden per week. The figure below plots the marginal benefit and marginal cost points.

Emmanuel's Marginal Benefit and Marginal Cost of Gardening

Hours Spent

Gardening

Marginal Benefit

(dollars)

Marginal Cost

(dollars)

1 $21 $3
2 18 6
3 15 9
4 12 12
5 9 15
6 6 18
7 3 21

a. Given the information above, what is Emmanuel's optimal amount of time spent gardening each week?

  1. 1 hour
  2. 4 hours
  3. 0 hours
  4. 7 hours

b. If Emmanuel were to spend 2 hours each week gardening:

  1. marginal cost would exceed marginal benefit by $12.
  2. marginal benefit would exceed marginal cost by $12.
  3. marginal benefit would equal marginal cost.
  4. marginal benefit would exceed marginal cost by $18.

c. If Emmanuel were to spend 6 hours each week gardening:

  1. marginal cost would exceed marginal benefit by $12.
  2. marginal benefit would exceed marginal cost by $18.
  3. marginal benefit would exceed marginal cost by $12.
  4. marginal benefit would equal marginal cost.

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Kristelle Balando
Kristelle BalandoLv10
29 Sep 2019

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