Formulas Used |
||||||
Q |
TB |
TC |
NB |
MB |
MC |
MNB |
10 |
4000 |
1000 |
||||
20 |
8000 |
3000 |
||||
30 |
12000 |
6000 |
||||
40 |
14000 |
10000 |
||||
50 |
15000 |
15000 |
Suppose you are given the following benefit and costs. Fill in the remainder of the chart – show work and formulas used for NB, MB, MC and MNB.
b. What is the optimal Q? Explain how you know using NB and MNB.
Given: Price Quantity TR MR MC TC Profit $15,000 0 0 ---- ---- 20000 -$20,000 14,000 1 14000 14000 $2,000 22000 -8000 13,000 2 26000 12000 1000 $23,000 3000 12,000 3 36000 10000 1000 $24,000 12000 11,000 4 44000 8000 1000 $25,000 19000 10,000 5 50000 6000 $3,000 28000 22000 9,000 6 54000 4000 $5,000 33000 21000 8,000 7 56000 2000 8000 $41,000 15000 7,000 8 56000 0 $12,000 53000 3000 6,000 9 54000 -2000 20000 $73,000 -19000 5,000...