The only choice variable is x. The total benefit function is B(x) = 100x - 2x2, and the total cost function is C(x) = 1 / 3 x3 – 6x2 + 52x + 80.
a. What are the marginal benefit and marginal cost functions?
b. Set up the net benefit function and then determine the level of x that maximizes net benefit. (Use the positive value of x.)
c. What is the maximum level of net benefit?