a continuous decision, Q, is B(Q) = 200 – 20? and the corresponding total cost is C(Q) = 4 + 2Q², so that MB(Q = 20 – 4Q and MC(Q) = 4Q. a. What is total benefit when Q = 2? Q = 10? b. What is marginal benefit when Q = 2? Q = 10? c. What level of Q maximizes total benefit? d. What is total cost when Q = 2? Q = 10? e. What is marginal cost when Q = 2? Q = 10? f. What level of Q minimizes total cost? g. What level of Q maximizes net benefits? %3D

a continuous decision, Q, is B(Q) = 200 – 20? and the corresponding total cost is C(Q) = 4 + 2Q², so that MB(Q = 20 – 4Q and MC(Q) = 4Q. a. What is total benefit when Q = 2? Q = 10? b. What is marginal benefit when Q = 2? Q = 10? c. What level of Q maximizes total benefit? d. What is total cost when Q = 2? Q = 10? e. What is marginal cost when Q = 2? Q = 10? f. What level of Q minimizes total cost? g. What level of Q maximizes net benefits? %3D

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

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 5MC

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