Question
ABC Telcom enterprises recently instituted an in-house recycling program. The benefit of this program include not only the benefit to the environment of recycling but
ABC Telcom enterprises recently instituted an in-house recycling program. The benefit of this program include not only the benefit to the environment of recycling but also the goodwill generated by ABC's leadership in this area. The costs of recycling include all of the energy, labor and equipment required to do the recycling. Suppose these benefits and costs are given by:
B(Q)=100Q - 2Q
C(Q) = 2Q
Where, MB =100-4Q, and MC=2
a. What level of Q maximizes the total benefits of recycling?
b. What level of Q minimizes the total costs of recycling?
c. What level of Q maximizes the net benefits of recycling?
d. What level of recycling is optimal? Why?
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