9. Suppose that the total benefit derived from a given decision Q is: B(Q)=25Q - Q² and the corresponding total cost is: C(Q) = 5+Q² a. MB (Q) = b. MC(Q) = c. What is the total benefit when Q-2? Q-10? d. What is the marginal benefit when Q-2? Q-10? e. What level of Q maximizes total benefits? f. What is the total cost when Q-2? Q-10? g. What is the marginal cost when Q-2? Q-10? h. What level of Q minimizes total cost? i. What level of Q maximizes net benefits?

9. Suppose that the total benefit derived from a given decision Q is: B(Q)=25Q - Q² and the corresponding total cost is: C(Q) = 5+Q² a. MB (Q) = b. MC(Q) = c. What is the total benefit when Q-2? Q-10? d. What is the marginal benefit when Q-2? Q-10? e. What level of Q maximizes total benefits? f. What is the total cost when Q-2? Q-10? g. What is the marginal cost when Q-2? Q-10? h. What level of Q minimizes total cost? i. What level of Q maximizes net benefits?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.4IP

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