Neal is a coffee drinker. At the local coffee shop, the price of a cup of coffee is $3. Neal's total benefits from
drinking coffee are indicated in the accompanying table.
Use this information to calculate Neal's marginal benefit
of consuming each cup of coffee.
Quantity of
coffee
(cups per day)
Total
benefits
2
3
$8
$14
SI8
$20
$21
4
5
a. The marginal benefit of the first cup is 5
b. The marginal benefit of the second cup is $
10
c. The marginal benefit of the third cup is $15
d. The marginal benefit of the fourth cup is 25
e. The marginal benefit of the fifth cup is s
f. Neil should consume
cups of coffee per day.

Answer and Step-by-step explanation: Marginal Benefit is the maximum a person is willing to pay for an additional good or service. It can be calculated as:

For each cup of coffee:

For the first cup, benefit is $8;

For the second:

marginal = 6

For the third:

marginal = 4

For the fourth:

marginal = 2

For the fifth:

marginal = 1

The cost of the coffe is $3, so comparing benefit and cost, Neal should consume 4 cups of cofee per day.

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step-by-step explanation:

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