An owner can lease her building for $150,000 per year for three years. The explicit cost...

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An owner can lease her building for $150,000 per year for three years. The explicit cost of maintaining the building is $50,000, and the implicit cost is $65,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 7 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits. $ b. Economic profits. $ 2 Complete the following table and answer the accompanying questions. Control Variable Total Benefits 8 points Q B(Q) 100 1,200 101 1,400 102 1,590 103 1,770 eBook 104 1,940 105 2,100 106 2,250 References 107 2,390 108 2,520 109 110 2,640 2,750 Total Cost C(Q) 950 Net Benefits Benefits N(Q) Marginal Benefit MB (Q) Marginal Cost MC (Q) Marginal Net Benefit MNB(Q) 210 60 70 80 90 100 110 120 130 140 150 160 a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this level of the variable? Marginal cost is much larger than marginal benefit. Marginal cost is slightly larger than marginal benefit. Marginal cost is much smaller than marginal benefit. Marginal cost is slightly smaller than marginal benefit. An owner can lease her building for $150,000 per year for three years. The explicit cost of maintaining the building is $50,000, and the implicit cost is $65,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 7 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits. $ b. Economic profits. $ 2 Complete the following table and answer the accompanying questions. Control Variable Total Benefits 8 points Q B(Q) 100 1,200 101 1,400 102 1,590 103 1,770 eBook 104 1,940 105 2,100 106 2,250 References 107 2,390 108 2,520 109 110 2,640 2,750 Total Cost C(Q) 950 Net Benefits Benefits N(Q) Marginal Benefit MB (Q) Marginal Cost MC (Q) Marginal Net Benefit MNB(Q) 210 60 70 80 90 100 110 120 130 140 150 160 a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this level of the variable? Marginal cost is much larger than marginal benefit. Marginal cost is slightly larger than marginal benefit. Marginal cost is much smaller than marginal benefit. Marginal cost is slightly smaller than marginal benefit.