# Question

Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B (Q) = 100 + 36Q – 4Q2 and C (Q) = 80 + 12Q. [MB (Q) = 36 – 8Q and MC (Q) = 12.

a. Write out the equation for the net benefits.

b. What are the net benefits when Q = 1? Q = 5?

c. Write out the equation for the marginal net benefits.

d. What are the marginal net benefits when Q = 1? Q = 5?

e. What level of Q maximizes net benefits?

f. At the value of Q that maximizes net benefits, what is the value of marginal net benefits?

a. Write out the equation for the net benefits.

b. What are the net benefits when Q = 1? Q = 5?

c. Write out the equation for the marginal net benefits.

d. What are the marginal net benefits when Q = 1? Q = 5?

e. What level of Q maximizes net benefits?

f. At the value of Q that maximizes net benefits, what is the value of marginal net benefits?

## Answer to relevant Questions

A firm’s current profits are $ 400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm’s opportunity cost of funds is 6 percent, determine the value of the firm.a. The ...An owner can lease her building for $ 120,000 per year for three years. The explicit cost of maintaining the building is $ 40,000, and the implicit cost is $ 55,000. All revenues are received, and costs borne, at the end of ...Suppose one of your clients is four years away from retirement and has only $ 2,500 in pretax income to devote to either a Roth or traditional IRA. The traditional IRA permits investors to contribute the full $ 2,500 since ...Consider a market where supply and demand are given by Qsx = - 16 + Px and Qdx = 92 - 2Px. Suppose the government imposes a price floor of $ 40, and agrees to purchase any and all units consumers do not buy at the floor ...You are the manager of a firm that receives revenues of $ 40,000 per year from product X and $ 90,000 per year from product Y. The own price elasticity of demand for product X is 1.5, and the cross- price elasticity of ...Post your question

0