ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
A firm has the following benfits and costs equations: B(Q) = 450Q - 26Q² and MC(Q) = 136Q
Expert Solution
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Step 1
The net benefit is the difference between total benefits and total costs. It means a total cost rises then net benefits fall and as total cost falls then net benefit rises.
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