1. What is the economic goal of this process? With the table in (a), determine the economically...
Fantastic news! We've Found the answer you've been seeking!
Question:
1. What is the economic goal of this process? With the table in (a), determine the economically optimal level of the control variable Q. Explain. The economic goal of this
2. State the economic condition for a manager's optimal level of the control variable Q. With data from your Table in
(a), provide a graphical illustration and a brief explanation supporting your stated economic condition for the optimal level of Q.
Control Variable | Total Benefits | Total Cost TC(Q) | Net Benefits, NB(Q) | Marginal Benefits, MB(Q) | Marginal Cost, MC(Q) | Marginal Net Benefits, MNB(Q) |
Q | TB(Q) | |||||
100 | 1100 | 800 | -- | -- | -- | |
101 | 1330 | 880 | 450 | 230 | 80 | 150 |
103 | 1730 | 1080 | 650 | 200 | 100 | 100 |
106 | 2240 | 1440 | 800 | 170 | 120 | 50 |
110 | 2860 | 1960 | 900 | 155 | 130 | 25 |
115 | 3597.5 | 2635 | 962.5 | 147.5 | 135 | 12.5 |
120 | 4297.5 | 4035 | 262.5 | 140 | 280 | -140 |
Related Book For
Posted Date: