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QUESTION 19 Your research department has estimated the total benefits (revenues) and costs of producing output (Q) to be: B(Q) = 8000 Q - 30-

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QUESTION 19 Your research department has estimated the total benefits (revenues) and costs of producing output (Q) to be: B(Q) = 8000 Q - 30- and C(Q) = QZ . This means that MB = 8000 - 6Q and MC = 20. What level of output maximizes profits? QUEST N 20 The manager of a software company seeks to maximize profits by producing the profit-maximizing Ivel of outpput (Q), the total benefits (revenues) and costs for various levels of output are summarized below, and are given in millions of dollars. What is the relationship between marginal benefits and marginal cost at the level of output that maximizes net benefits? B C B-C MB MC MNB 20 10 38 25 54 41 58 59 50 79

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