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

English Mathematics
1

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 Total benefits

1 $8
2 $14
3 $18
4 $20
5 $21

2

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 Total benefits

Answer: To calculate Neal’s marginal benefit of consuming each cup of coffee, you can use the formula:

Marginal Benefit = Change in Total Benefits / Change in Quantity

Let’s calculate it step by step using the provided table:

Quantity of Coffee Total Benefits
1 $8
2 $14
3 $18
4 $20
5 $21
  1. Change in Total Benefits for 2 cups: $14 - $8 = $6
  2. Change in Quantity: 2 cups - 1 cup = 1 cup

Marginal Benefit for the 2nd cup: $6 / 1 cup = $6

  1. Change in Total Benefits for 3 cups: $18 - $14 = $4
  2. Change in Quantity: 3 cups - 2 cups = 1 cup

Marginal Benefit for the 3rd cup: $4 / 1 cup = $4

  1. Change in Total Benefits for 4 cups: $20 - $18 = $2
  2. Change in Quantity: 4 cups - 3 cups = 1 cup

Marginal Benefit for the 4th cup: $2 / 1 cup = $2

  1. Change in Total Benefits for 5 cups: $21 - $20 = $1
  2. Change in Quantity: 5 cups - 4 cups = 1 cup

Marginal Benefit for the 5th cup: $1 / 1 cup = $1

So, Neal’s marginal benefit of consuming each cup of coffee is as follows:

  • 2nd cup: $6
  • 3rd cup: $4
  • 4th cup: $2
  • 5th cup: $1