Question
AMS recently instituted an in-house recycling program.The benefits of this program include not only the benefits to the environment of recycling but also the goodwill
AMS recently instituted an in-house recycling program.The benefits of this program include not only the benefits to the environment of recycling but also the goodwill generated by AMS's leadership in this area.The costs of recycling include all energy, labor, and space required to do the recycling.Suppose these benefits and costs are given by B(Q) = 100Q - 2Q2 and C(Q) = 2Q.(Note that MB = 100 - 4Q, and MC = 2.)
a.What level of Q maximize the total benefits of recycling?
b.What level of Q minimize the total costs of recycling?
c.What level of Q maximize the net benefits of recycling?
d.What level of recycling is optimal? Why?
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