QUESTION 2 Maddy is an aspiring dancer who engages a private teacher to improve her movement. It costs Maddy $50 for each lesson. Maddy gains $300 of benefit from attending 6 lessons and $360 of benefit from attending 7 lessons. Which of the following statements are true: The marginal benefit of attending the seventh lesson is $50. The marginal cost of the seventh lesson is $60. There is insufficient evidence to determine the marginal benefit from the eighth lesson of private teaching. Maddy should attend the seventh lesson.
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Step 1: Write down the given information: cost per lesson = $50; total benefit from 6 lessons = $300; total benefit from 7 lessons = $360. Show more…
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