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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

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Answer:

A. 5

Explanation:

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


B_m=(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=(5)/(1)=5

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