1. (30 points)

(a)Complete the table below. Clearly show the calculation for each missing data point in each column.

(b)From the table in (a), determine the net benefits maximizing level of the control variable Q.

(c)Use the relationship between marginal benefit and marginal cost at the various level of the control variable to explain why the level of the control variable in (b) is regarded as the economically optimal level.

CHART:

Control Variable Q= Total Benefits TB(Q)= Total Cost TC(Q)= Net Benefits NB(Q)= Marginal Benefits MB(Q)= Marginal Cost MC(Q) =Marginal Net

100 1200 900 - 257.5 70 -

104 2110 - - - 90 -

108 2900 - - - 110 -

112 3570 - - - 130 -

114 3875 - - - 140 -

115 4020 - - - 145 -

116 4157.5 - - - 150 -

120 4587.5 - - - 170 -