# Question: Suppose that the total benefit and total cost from a

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?

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