2 (25 points) Assume that the total benefit from a continuous decision, involving a control variable Q, is TB(Q) 25Q 2 5Q 2 and the associated total cost is TC(Q) 3 2Q 2 (a)Provide a mathematical justification that net benefits are maximized at your determined level of the control variable Q in (b)...

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2. (25 points) Assume that the total benefit from a continuous decision, involving a control variable Q,

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2. (25 points)

Assume that the total benefit from a continuous decision, involving a control variable Q, is TB(Q) = 25Q - 2.5Q² and the associated total cost is TC(Q) = 3 + 2Q².

(a)Provide a mathematical justification that net benefits are maximized at your determined level of the control variable Q in (b) above.

(b)Determine the level of control variable Q that maximizes total benefit. Clearly show your steps and calculations.

(c)Estimate the total fixed cost and total variable cost when the control variable Q is 3. Clearly show your steps and calculations.

Posted Date: Jun 21, 2024 09:10 AM

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2. (25 points) Assume that the total benefit from a continuous decision, involving a control variable Q,

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