Suppose that the total benefit and total cost from a continuous activity are B(Q) = 76 + 24Q – 2Q2 and C(Q) = 60 + 6Q. What level of Q maximize net benefits? At the value of Q that maximize net benefits, what is the value of marginal net benefits?
Suppose that the total benefit and total cost from a continuous activity are B(Q) = 76...
Suppose the total benefit & total cost from a continuous activity are given by the two equations 1) B(X) = 100 + 36X - 4X^2 And 2) C(X) = 80 + 12X A) What are the net benefits when X =1? x=5? B) What are the marginal net benefits when X= 1? X=5? C) What level of X maximizes net benefit? D) At the value of X that maxes net benefits, what is the value of marginal net benefits?...
Suppose the total benefit derived from a continuous decisions, Q, is B(Q)=20Q-2Q^2 and the total cost from deciding Q is C(Q)=4+2Q^2. The marginal benefit (MB) and marginal cost (MC) is the first order derivative of these functions. MB(Q)=20-4Q and MC(Q)=4+4Q. What level of Q minimizes total cost?
Suppose the total benefit derived from a continuous decisions, Q, is B(Q) = 20Q − 2Q and the 2 total cost from deciding Q is C(Q) = 4Q + 2Q . The marginal benefit (MB) and marginal cost (MC) 2 is the first order derivative of these functions. MB(Q) = 20 − 4Q and MC(Q) = 4 + 4Q . (1) (4 points, 2 each) What is the total benefit when Q=2? Q=10? (2) (4 points, 2 each) What is...
Suppose the total benefit derived from a continuous decisions, Q, is B(Q) = 20Q − 2Q and the 2 total cost from deciding Q is C(Q) = 4Q + 2Q . The marginal benefit (MB) and marginal cost (MC) 2 is the first order derivative of these functions. MB(Q) = 20 − 4Q and MC(Q) = 4 + 4Q . (6) (4 points) What level of Q minimizes total cost?
7. A manger of an engineering firm faces the following benefit and cost structure: B(Q) = 300Q – 6Q^2 and C(Q) = 4Q^2 What is the quantity that the manager of the firm should produce to maximize the total benefits? . What is the quantity that the manager of the firm should produce to maximize the net benefits? The manager is asked to determine the maximum net benefit at a net benefit maximizing level of output. He calculates output?
Question 2: Working with Marginal Benefits and Costs Suppose the total benefit derived from a continuous decisions, Q, ís B(Q) = 200-202 and the total cost from deciding Q is C(O) 4+2Q. The marginal benefit (MB) and marginal cost (MC) is the first order derivative of these functions. MBO) 20-4 and MC(O) 4+40 (1) (4 points, 2 each) What is the total benefit when Q-2? Q-10? (2) (4 points, 2 each) What is the marginal benefit when Q-2? Q-10? (3)...
Question 2: Working with Marginal Benefits and Costs Suppose the total benefit derived from a continuous decisions, Q, is B() 200-202 and the total cost from deciding Q is C(Q)-4Q +20. The marginal benefit (MB) and marginal cost (MC) is the first order derivative of these functions. MB)2040 and MC() 4 +40 (1) (4 points, 2 each) What is the total benefit when Q-2? Q-10? (2) (4 points, 2 each) What is the marginal benefit when Q-2? Q 10? (3)...
Assume that total benefits for a given level of output are given as B(Q) = 100 + 20Q - 2Q2, and that C(Q) = 20 + 10Q. Assume that Q is in thousands units and benefits and costs are in dollars. Write out the net benefit equation: What are the net benefits when Q = 10? Explain result meaning based on the economic theory. Write out the equation for marginal benefits. What is the benefit from selling an additional unit...
A TOTAL BENEFIT TOTAL COST MARGINAL BENEFIT MARGINAL COST NET BENEFIT 0 0 _____ XX XX 0 1 _____ _____ 100 _____ 80 2 _____ 50 90 _____ _____ 3 250 _____ _____ 40 _____ 4 _____ _____ _____ 60 150 5 340 220 _____ _____ _____ What is marginal benefit for the 4th unit of the activity? The optimal level of activity is: What is the net benefit of the 5th unit of the...
Question2 0.1 pts The total benefit and total cost associated with producing widgets is described by the equations below Total Cost-50+ 2Q + 3Q2 Total Benefit 24Q -602 When Q 2, then marginal benefit is greater than marginal cost marginal benefit is equal to marginal cost marginal benefit is less than marginal cost