Question

1. For a office building, marginal benefit and marginal cost of an additional floor for a builder is given by,

Answer 1

The marginal cost formula is: Change in total cost divided by change in quantity or: Change in TC / Change in Q = MC (Hall,2019).

The formula for  marginal benefit is the change in total benefit divided by the change in quantity or: Change in TB / Change in Q = MB (Hall,2019).