Problem - Emmanuel enjoys growing zucchini in his garden and then selling his produce at the local farmers' market. The table below shows his marginal benefit and marginal cost for each hour he spends in his garden per week. The figure below plots the marginal benefit and marginal cost points.
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Emmanuel's Marginal Benefit and Marginal Cost of Gardening
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Hours Spent Gardening
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Marginal Benefit (dollars)
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Marginal Cost (dollars)
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1
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$21
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$3
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2
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18
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6
|
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3
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15
|
9
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4
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12
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12
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5
|
9
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15
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6
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6
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18
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7
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3
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21
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a. Given the information above, what is Emmanuel's optimal amount of time spent gardening each week?
1 hour
0 hours
4 hours
7 hours
b. If Emmanuel were to spend 2 hours each week gardening:
marginal benefit would exceed marginal cost by $18.
marginal benefit would exceed marginal cost by $12.
marginal benefit would equal marginal cost.
marginal cost would exceed marginal benefit by $12.
c. If Emmanuel were to spend 6 hours each week gardening:
marginal benefit would equal marginal cost.
marginal cost would exceed marginal benefit by $12.
marginal benefit would exceed marginal cost by $18.
marginal benefit would exceed marginal cost by $12.