Question: Suppose the total benefit derived from a given decision, Q, is B(Q) = 25Q - Q2 and the corresponding total cost is C(Q) = 5

Suppose the total benefit derived from a given decision, Q, is B(Q) = 25Q - Q2 and the corresponding total cost is C(Q) = 5 + Q2, so that MB(Q) = 25 - 2Q and MC(Q) = 2Q.

a. What is total benefit when Q = 2? Q = 10?

b. What is marginal benefit when Q = 2? Q = 10?

c. What level of Q maximizes total benefit?

d. What is total cost when Q = 2? Q =10?

e. What is marginal cost when Q = 2? Q = 10?

f. What level of Q minimizes total cost?

g. What level of Q maximizes net benefits

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