Answered: [Appendix material: calculus required]…

[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 150Y-10Y² and C(Y) = 5Y 2. Then marginal costs are: a. 5Y. b. 10Y. c. 2.5Y. d. 25Y.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 150Y-10Y ² and C(Y) =
5Y 2. Then marginal costs are:
a. 5Y.
b. 10Y.
c. 2.5Y.
d. 25Y.

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If marginal cost is less than the average variable cost and output increases, average total cost _______ and average variable cost ________. OPTIONS: (i) decreases, increases (ii) increases, decreases (iii) increases, increases (iv) decreases, decreases
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Please drawing carefully otherwise i give multiple downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
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