Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

QUESTION

Suppose the total benefit derived from a continuous decision, Q, is B(Q) = 20Q - 2Q 2 and corresponding total cost is C(Q) = 4 + 2Q 2 so that MB(Q) =...

Suppose the total benefit derived from a continuous decision, Q, is B(Q) = 20Q - 2Q2 and corresponding total cost is C(Q) = 4 + 2Q2 so that MB(Q) = 20 - 4Q and MC(Q) = 4Q.

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 level of Q minimizes total cost?

f.       What level of Q maximizes net benefits?

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question