At what point is the marginal benefit of applying additional fertilizer no longer greater than the marginal cost of the fertilizer?

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28-02-2017
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At what point is the marginal benefit of applying additional fertilizer no longer greater than the marginal cost of the fertilizer?

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Dunuu Dunuu · Answer 1 · 2017-03-12T20:02:04+01:00

Dunuu Dunuu

12-03-2017

The answer would be 4 gallons because at that point the line begins to stay the same and doesn't increase after.

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pristina pristina · Answer 2 · 2018-10-10T16:44:49+02:00

Answer: 4 gallons

Explanation:

Marginal benefit refers to the additional benefit in the form of revenue obtained when one more unit of a good is produced and sold.

While, marginal cost is the additional cost of producing one more unit of a good.

As can be seen in the graph, marginal benefit from additional fertilizers becomes constant beyond 4 gallons. Thus, it is beyond 4 gallons of fertilizers that marginal benefit of applying additional fertilizer is no longer greater than the marginal cost of the fertilizer.

Thus, correct option is 4 gallons.