The construction estimator told the storage unit owner that building another section of storage units will likely add 100 more storage space renters to the bottom line. The rational storage business owner considered the rental prices of an additional 100 units, but he would decide to add more units if and only if .
a) The marginal benefit is greater than the marginal cost of additional units. b) demand for additional storage units from one more building (the marginal product) is risingc) the total benefits from all storage units are greater than the total cost of all storage units.

The correct answer is letter "A": The marginal benefit is greater than the marginal cost of additional units.

Explanation:

The marginal benefit-cost is an analysis that companies make to determine what the benefit is of producing one more unit compared to the costs of producing that additional unit. If the marginal benefit is greater than the marginal cost, the production of the additional unit is reasonable. If the marginal cost is greater than the marginal benefit, companies are unlikely to go ahead with the production of the additional unit.

15 pounds of apples and 6 cups of flour

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.