Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B (Q) = 100 + 36Q -4Q and C (Q) = 80 + 12Q Write out the equationfor the net benefits. What are the net benefits when Q= 1? Q= 5? Write out the equation for the marginal net benefits. What are the marginal net benefits when Q= 1? Q= 5? What level of Q maximizes net benefits? At the value of Qthat maximizes net benefits,what is the value of marginal net benefits?

Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B (Q) = 100 + 36Q -4Q and C (Q) = 80 + 12Q Write out the equationfor the net benefits. What are the net benefits when Q= 1? Q= 5? Write out the equation for the marginal net benefits. What are the marginal net benefits when Q= 1? Q= 5? What level of Q maximizes net benefits? At the value of Qthat maximizes net benefits,what is the value of marginal net benefits?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 18SQ

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Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B (Q) = 100 + 36Q -4Q and C (Q) = 80 + 12Q a)-What are the marginal net benefits when Q= 1? Q= 5? b)-What level of Q maximizes net benefits? c)-At the value of Qthat maximizes net benefits,what is the value of marginal net benefits?
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