The following table shows the relationship between the speed

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. CPU GHz 2.0 Tota MarginalTotalMarginal Benefit Benefit $1,000 $1,400 Cost Cost $900 $100 $300 $1.200 $1.500 3.0 $1,900 2,000 4.0 $400 The marginal benefit of a 4.0GHz computer is: O $400. $200. O s100. O $2000.

Solution

Solution-

The marginal benefit of a 4.0GHz computer is : $200.

The correct option is B. $200

Reason-

Marginal benefit = Change in Total benefit / Change in Quantity.

                        = (1900 - 2000) / (3.5 - 4.0)

                        = - 100 / - 0.5

                        = $200