Question

Chapter 1 Problems Saved Help Save & Exit Submit Check my work 6 Complete the following table and answer the accompanying questions rgina Benefit MNB (O) Total Control Variable Q Benefits B(Q) Total Cost Net Benefits Marginal Marginal Cost c(e) MC (Q) 60 70 80 90 100 110 120 130 140 150 160 Benefits N(Q) Benefit MB (Q) 10 points 100 101 102 103 104 105 106 107 108 109 110 1,200 ,400 ,590 ,770 1,940 2,100 2,250 2,390 2,520 2,640 2,750 950 210 eBook Print References a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this level of the variable? O Marginal cost is much larger than marginal benefit. O Marginal cost is slightly larger than marginal benefit. O Marginal cost is much smaller than marginal benefit. Prev 6 of 16 Next >

Answer 1

Total Cost = Total Cost (previous one) + MC

Marginal benefit =change in Total benefit/ change in quantity

Refer the attached picture

8 Q Total Benefit, B Total Cost Net Benefit Marginal Benefit Marginal Cost Marginal Net Benefit 2100 2

A. Level where control variable and net benefit maximized

107 units.

We are not selecting 108 because the marginal net benefit is negative.

B. Marginal benefit is larger than Marginal cost.

Please contact if having any query thank you.