Answer the next 6 questions using the following marginal benefit (MB) and marginal cost (MC) functions for activity A: MB 1 200-20A and MC = 500 + 30A and the following total benefit (TB) and total cost (TC) functions: TB = 1 200A-10A² and TC = 500A + 15A² 1 - Undertaking the 10th unit of the activity A 2 - Undertaking the 20th unit of the activity A 3 - The optimal level of activity A* is 14 increases 5- Eliminating the 25th unit of the activity Total Cost by decreases 4 - At the optimal activity level of A*, Net Benefit is equal to 6 - What level of activity maximizes TOTAL Benefit? Net Benefit by 200 Net Benefit by 300 4 Total Benefit by and

Answer the next 6 questions using the following marginal benefit (MB) and marginal cost (MC) functions for activity A: MB 1 200-20A and MC = 500 + 30A and the following total benefit (TB) and total cost (TC) functions: TB = 1 200A-10A² and TC = 500A + 15A² 1 - Undertaking the 10th unit of the activity A 2 - Undertaking the 20th unit of the activity A 3 - The optimal level of activity A* is 14 increases 5- Eliminating the 25th unit of the activity Total Cost by decreases 4 - At the optimal activity level of A*, Net Benefit is equal to 6 - What level of activity maximizes TOTAL Benefit? Net Benefit by 200 Net Benefit by 300 4 Total Benefit by and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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