Question: 2. The only choice variable is x. The total benefit function is B(x) 100x 2x2, and the total cost function is a. What are the

2. The only choice variable is x. The total benefit function is B(x) 100x 2x2, and the total cost function is

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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Managerial Economics Questions!

Q:

Hey! So excited to have you on the team! I heard you were helping one of our coworkers with their data analysis. I was wondering if you could also help me . I can't remember the difference between...

Q:

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...

Q:

Please read chapter 4 the answer the question 10: It may seem puzzling that a negative externality may induce a strategic complementarity. But ments over the Nash equilibrium. It is not surprising...

Q:

please see the word file I know the answers but how we get that can you help me understanding the steps for chapter 3 &4 SOLUTIONS_REVIEW TEST 1 CHAPTER 1 1) Mathematical Exercises p.36 (1) Using a...

Q:

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?...

Q:

1. Assume the only choice variable is x. The total benefit function is B(x) = 170x x2, and the cost function is C(x) = 100 10x + 2x2. a. What are the marginal benefit and marginal cost functions?...

Q:

Assume the only choice variable is x. The total benefit function is B(x) = 170x - x2, and the cost function is C(x) =100 - 10x + 2x2. a. What are the marginal benefit and marginal cost functions? b....

Q:

1. Gump's Shrimp has the production function, q = K3/4L1/4. Where q is the number of shrimps per hour, L is the number of workers and K is the number of boats. Suppose that PL = $30/hour and PK =...

Q:

Answer the given problem. PROBLEM SET NUMBER 1: MANAGERIAL ECONOMICS AND ACCOUNTING 1. You are the Chief Executive Officer (CEO) of a five - star hotel chain and must decide where to locate a new...

Q:

Alex, Kara, and Susie are the only three people In a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third...

Q:

Application Assignment 1 Math 1395 Business Math, Fall 2016 Overview The management of Bear Events, an event planning and promotions company, must decide between two venues for the upcoming Fall...

Q:

Suppose that two mining companies, Australian Minerals Company (AMC) and South African Mines, Inc. (SAMI), control the only sources of a rare mineral used in making certain electronic components. The...

Q:

A retail company has a profit margin of 10% on its sales. The company's fixed costs are $50,000, and its variable costs are $30 per unit. The company has a target profit of $80,000 and expects to...

Q:

The "beta" is a measure of: Group of answer choices Unique risk Total risk Market risk None of the above

Q:

Solve the following system of equations. 3x/4 - 2y/3 = -13/6 4x/5 + 3y/4 = 123/10