9. Suppose the total benefit derived from a given decision, Q, is B(Q) 25Q Q2

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9. 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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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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9. Suppose the total benefit derived from a given decision, Q, is B(Q) 25Q Q2

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Managerial Economics And Business Strategy

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