3. Suppose that the total benefit and total cost from an activity are, respectively, given by the...

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3. Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) 150 28Q 5Q2 and C(Q) 100

+ 8Q. (Note: MB(Q) 28 10Q and MC(Q) 8.)

a. Write out the equation for the net benefits.

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

c. Write out the equation for the 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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Managerial Economics And Business Strategy

ISBN: 9780073375960

7th Edition

Authors: Michael Baye

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Question Posted: Oct 07, 2024 07:02 AM

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3. Suppose that the total benefit and total cost from an activity are, respectively, given by the...

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