Complete the following table and answer the accompanying questions.   Control Variable Q Total Benefits B(Q) Total Cost C(Q) Net Benefits Benefits N(Q) Marginal Benefit MB(Q) Marginal Cost MC(Q) Marginal Net Benefit MNB(Q) 100 1,200 950   210 60   101 1,400       70   102 1,590       80   103 1,770       90   104 1,940       100   105 2,100       110   106 2,250       120   107 2,390       130   108 2,520       140   109 2,640       150   110 2,750       160     a. At what level of the control variable are net benefits maximized?     b. What is the relation between marginal benefit and marginal cost at this level of the variable?     multiple choice Marginal cost is much smaller than marginal benefit. Marginal cost is slightly larger than marginal benefit. Marginal cost is slightly smaller than marginal benefit. Marginal cost is much larger than marginal benefit

ENGR.ECONOMIC ANALYSIS
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Complete the following table and answer the accompanying questions.

 

Control Variable Q Total Benefits B(Q) Total Cost C(Q) Net Benefits Benefits N(Q) Marginal Benefit MB(Q) Marginal Cost MC(Q) Marginal Net Benefit MNB(Q)
100 1,200 950   210 60  
101 1,400       70  
102 1,590       80  
103 1,770       90  
104 1,940       100  
105 2,100       110  
106 2,250       120  
107 2,390       130  
108 2,520       140  
109 2,640       150  
110 2,750       160  

 

a. At what level of the control variable are net benefits maximized?
 


 

b. What is the relation between marginal benefit and marginal cost at this level of the variable?
 

 

multiple choice

  • Marginal cost is much smaller than marginal benefit.
  • Marginal cost is slightly larger than marginal benefit.
  • Marginal cost is slightly smaller than marginal benefit.
  • Marginal cost is much larger than marginal benefit
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