Which of the following statements is not true? The slope of the net benefit curv
ID: 1138848 • Letter: W
Question
Which of the following statements is not true?
The slope of the net benefit curve is horizontal when the control variable is at the level where MB = MC.
At the optimal level of a control variable, the slope of the total benefit curve equals the slope of the total cost curve.
The optimal level of a control variable is the one at which total benefit is maximized.
The height of the marginal benefit curve at any given level of the control variable is equal to the slope of the total benefit curve at the same level of the control variable.
The slope of the net benefit curve is horizontal when the control variable is at the level where MB = MC.
At the optimal level of a control variable, the slope of the total benefit curve equals the slope of the total cost curve.
The optimal level of a control variable is the one at which total benefit is maximized.
The height of the marginal benefit curve at any given level of the control variable is equal to the slope of the total benefit curve at the same level of the control variable.
Explanation / Answer
Ans is C
Total benefit will maximised when Marginal benefit is maximised. However it is possible when marginal benefit is equal to marginal cost I.e. the optimal level, the total benefit is not maximised.
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