The total benefits of the COMMIT program which is designed to encourage school children to commit themselves to a life free of drug addiction has been estimated to be B = 800q - 4q2, where q is the number of days the program is run in local schools. The total cost of running the program is $400 per day.
a. What is the maximum number of days that the COMMIT program can be run before net benefits turn negative?
b. What is the optimal number of days to run the program in order to maximize net benefits? (MB = 800 - 8q.)
c. At the optimal number of days, what is the net benefit of the program?
d. If the cost of running the program was to rise to 500 per day how that would affect the optimal number of days the program should be run?