Description of this paper

Suppose that the total benefit

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solution


Question

Suppose that the total benefit and total cost from an activity are, respectively given by the following equations:B(Q)=150+28Q-5Q? and C(Q)=100+8Q. (note:MB (Q)=28-10Q and MC (Q) =8);a Write out the equation for the net benefits.;b What are the net benefits when Q =1? Q=5?;c Write out the equation for the marginal net benefit;d What are the marginal net benefit when Q=1? Q=5?;e What level of Q maximizes net benefits, what is the value of marginal net benefits?;f At the value of Q the maximizes net benefits, what is the value of marginal net benefits?

 

Paper#26207 | Written in 18-Jul-2015

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