Please show how to solve step by step. Complete the following table and answer t

Question

Please show how to solve step by step.

Complete the following table and answer the accompanying questions. Marginal Net Benefit MNB (Q) Control Total Total Cost Net Benefits arginal Marginal Cost Variable Benefits B(O) MC (9 60 70 80 90 100 110 120 130 140 150 160 Benefits N(Q) Benefit MB (Q) 1,200 1,400 1,590 1,770 1,940 2,100 2,250 2,390 2,520 2,640 2,750 950 250 210 150 100 101 102 103 104 105 106 107 108 109 110 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?

Explanation / Answer

Following is the complete table -

(a)

The above table shows that net benefits are maximized corresponding to the level of the control variable of 107.

(b)

The marginal benefit exceeds the marginal cost by value of 10 at this level of the variable.

Q B(Q) C(Q) N(Q) MB(Q) MC(Q) MNB(Q) 100 1200 950 250 210 60 150 101 1400 1020 380 200 70 130 102 1590 1100 490 190 80 110 103 1770 1190 580 180 90 90 104 1940 1290 650 170 100 70 105 2100 1400 700 160 110 50 106 2250 1520 730 150 120 30 107 2390 1650 740 140 130 10 108 2520 1790 730 130 140 -10 109 2640 1940 700 120 150 -30 110 2750 2100 650 110 160 -50

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