Question: Assume the only choice variable is x. The total benefit function is B(x) = 170x - x2, and the cost function is C(x) =100 -

Assume the only choice variable is x. The total benefit function is B(x) = 170x - x2, and

the cost function is C(x) =100 - 10x + 2x2.

a. What are the marginal benefit and marginal cost functions?

b. Set up the net benefit function and then determine the level of x that maximizes net benefit.

c. What is the maximum level of net benefit?

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