Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(1) Control Variable Q (2) Total Benefits TB(Q) (3) Total Cost TC(Q) (4) Net Benefits, NB(Q) (5) Marginal Benefits, MB(Q) (6) Marginal Cost, MC(Q) (7)
(1) Control Variable Q | (2) Total Benefits TB(Q) | (3) Total Cost TC(Q) | (4) Net Benefits, NB(Q) | (5) Marginal Benefits, MB(Q) | (6) Marginal Cost, MC(Q) | (7) Marginal Net Benefits, MNB(Q) |
100 | 1100.0 | 800.0 | -- | -- | -- | |
101 | 880.0 | 230.0 | ||||
103 | 1080.0 | 200.0 | ||||
106 | 1440.0 | 170.0 | ||||
110 | 1960.0 | 155.0 | ||||
115 | 2635.0 | 147.5 | ||||
120 | 4035.0 | 140.0 |
- What is the economic goal of this process? With Table in (a), determine the economically optimal level of the control variable Q. Explain.
- State the economic condition for a manager's optimal level of the control variable Q. With data from your Table in (a), provide a graphical illustration and a brief explanation supporting your stated economic condition for the optimal level of Q.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started