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Your total benefit from performing a given activity as a function of how much you perform it (A) is TB(A)=13A0.1A2 While your total cost is
Your total benefit from performing a given activity as a function of how much you perform it (A) is TB(A)=13A0.1A2 While your total cost is TC(A)=A+0.2A2+5 A. What is the net benefit of performing this activity, as a function of A? B1. What is the marginal benefit of performing this activity, as a function of A ? B2. What is the marginal cost of performing this activity, as a function of A? C. What is the optimal level of activity? D. What is the maximum value of this net benefit? E1. At an activity level of A=10, what is the marginal benefit? E2. At an activity level of A=10, what is the marginal cost? F1. At an activity level of A=10, marginal benefit is F2. At an activity level of A=10, marginal cost is G. The +5 part in the total cost function
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