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QUESTION

Could use some help working through the below hw problem Suppose that the total benefit and total cost from a continuous activity are, respectively,

Could use some help working through the below hw problem

Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B(Q) = 100 + 36Q - 4Q2 and C(Q) = 80 + 12Q. Note that MB(Q) = 36-8Q and MC(Q) = 12.

a.      Write out the equation for net benefits.

b.     What are the net benefits when Q = 1? Q = 5?

c.      Write out the equation for marginal net benefits.

d.     What are the marginal net benefits when Q = 1? Q = 5?

e.      What level of Q maximizes net benefits?

f.       At the value of Q that maximizes net benefits, what is the value of marginal net benefits?

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