Answered: A firm has the following benfits and…

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Economics

A firm has the following benfits and costs equations: B(Q) = 450Q - 26Q² and MC(Q) = 136Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm has the following benfits and costs equations: B(Q) = 450Q - 26Q² and MC(Q) = 136Q

Expert Solution

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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