Question

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

Answer 1

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

Answer 2

Answer: 4 gallons

Step-by-step 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.