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)...
Suppose that the total benefit and total cost from a company are given by the following equations: B(Q) = 118.5 + 27.6Q - 1.7Q2 and C(Q) = 63.5 + 11.3Q + 0.6Q2. The Q that maximizes net benefits is: At the Q that maximizes net benefits, the value of the marginal net benefits is: At the optimal Q, the net benefits are:
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...