Assume the only choice variable is x. The total benefit function is B (x) = 170 x – x2, and the cost function is C (x) = 100 – 10 x + 2x2.
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.
c. What is the maximum level of net benefit?