a. What level of Q maximizes net benefits (profits)? b. What is the maximum level of net benefits (profits)?

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter1: What Economics Is About
Section: Chapter Questions
Problem 15QP
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Your firm's research department has estimated your total
revenues to be R(Q) = 3,000Q - 8Q² and your total costs to
be C (Q) = 100 + 2Q². (Note that MB = 3,000 - 16Q and MC
= 4Q.)
a. What level of Q maximizes net benefits (profits)?
b. What is the maximum level of net benefits (profits)?
Transcribed Image Text:Your firm's research department has estimated your total revenues to be R(Q) = 3,000Q - 8Q² and your total costs to be C (Q) = 100 + 2Q². (Note that MB = 3,000 - 16Q and MC = 4Q.) a. What level of Q maximizes net benefits (profits)? b. What is the maximum level of net benefits (profits)?
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