Question: (a)Complete the table below. Clearly show the calculation for each missing data point in each column. Control Variable Q /Total Benefits TB(Q)/ Total Cost TC(Q)/

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

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

(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.

(d)Provide a graphical illustration and a brief explanation in support of your response in (c) above.

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