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