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

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.

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.

Answer: To calculate Neal’s marginal benefit from consuming each cup of coffee, we can use the information provided in the table. The marginal benefit is the additional benefit Neal receives from consuming one more cup of coffee. To find it, we need to look at how his total benefit changes as he consumes each additional cup of coffee.

Let’s examine the table:

Cups of Coffee Total Benefit ($)
1 10
2 18
3 24
4 28
5 30

The marginal benefit of consuming each cup of coffee can be calculated by finding the change in total benefit when Neal goes from one level of consumption to the next. In this case:

  1. From 1 cup to 2 cups: Marginal Benefit = Total Benefit (2 cups) - Total Benefit (1 cup) = $18 - $10 = $8
  2. From 2 cups to 3 cups: Marginal Benefit = Total Benefit (3 cups) - Total Benefit (2 cups) = $24 - $18 = $6
  3. From 3 cups to 4 cups: Marginal Benefit = Total Benefit (4 cups) - Total Benefit (3 cups) = $28 - $24 = $4
  4. From 4 cups to 5 cups: Marginal Benefit = Total Benefit (5 cups) - Total Benefit (4 cups) = $30 - $28 = $2

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

  • For the first cup, it’s $10.
  • For the second cup, it’s $8.
  • For the third cup, it’s $6.
  • For the fourth cup, it’s $4.
  • For the fifth cup, it’s $2.

These values represent the additional benefit Neal receives from each additional cup of coffee he consumes.