Question: Answer the next 6 questions using the following marginal benefit ( MB ) and marginal cost ( MC ) functions for activity A : M
Answer the next questions using the following marginal benefit MB and marginal cost MC functions for activity :
A and
and the following total benefit TB and total cost TC functions:
and
Undertaking the unit of the activity
Net Benefit by
Undertaking the unit of the activity
Net Benefit by
The optimal level of activity is
At the optimal activity level of Net Benefit is equal to
Eliminating the unit of the activity Total Benefit by and
Total Cost by
What level of activity maximizes TOTAL Benefit?
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