Suppose that the total benefit and total cost from a company are given by the following equations: TB(Q) = 100 + 36Q – 4Q2 and TC(Q) = 80 + 12Q + 1.2Q2. Instructions: Round up your answers to no decimals. Do not round if the value is used for other calculations. The equation for the net benefits is: NB = + Q^ + Q^ What are the net benefits when Q = 2 and Q = 6? NB(2) = $, NB(6) = $ The equation for the marginal net benefits. MNB(Q) = + Q^
Suppose that the total benefit and total cost from a company are given by the following equations: TB(Q) = 100 + 36Q – 4Q2 and TC(Q) = 80 + 12Q + 1.2Q2. Instructions: Round up your answers to no decimals. Do not round if the value is used for other calculations. The equation for the net benefits is: NB = + Q^ + Q^ What are the net benefits when Q = 2 and Q = 6? NB(2) = $, NB(6) = $ The equation for the marginal net benefits. MNB(Q) = + Q^
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 3E
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Suppose that the total benefit and total cost from a company are given by the following equations:
TB(Q) = 100 + 36Q – 4Q2 and TC(Q) = 80 + 12Q + 1.2Q2.
Instructions: Round up your answers to no decimals. Do not round if the value is used for other calculations.
- The equation for the net benefits is: NB = + Q^ + Q^
- What are the net benefits when Q = 2 and Q = 6? NB(2) = $, NB(6) = $
- The equation for the marginal net benefits. MNB(Q) = + Q^
- What are the marginal net benefits when Q = 2? Q = 6? MNB(2)= $, MNB(6) = $
- What level of Q maximizes net benefits? units.
- At the value of Q that maximizes net benefits, what is the value of marginal net benefits? $
- At the value of Q that maximizes net benefits, what is the total profits? Profits = $
- The Q that maximizes total benefit is: Q = units, and the profits at this level of Q is: Profits = $
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