Question

This graph shows the increase in fertilizer and the resulting change in yield for cotton farm.

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

A. 3 gallons
B. 4 gallons
C.5 gallons
D. 6 gallons
E. 7 gallons

Answer 1

B. 4 Gal

Step-by-step explanation:

PLATO

Answer 2

At the point of B.4 gallons, the marginal benefit of applying additional fertilizer is no longer greater than the marginal cost of the fertilizer. If more gallon of fertilizer added to the cotton field, the amount of cotton harvested will be the same. This condition showed in the graph called the peak of marginal utility.