Will rate high! Control Var. Q Total Ben B(Q) Total Cost C(Q) Net Ben N (Q) Mar.

Question

Will rate high! Control Var. Q Total Ben B(Q) Total Cost C(Q) Net Ben N (Q) Mar.B.MBQ Mar Cost MCQ Mar Net MNQ 100 1200 950 210 40 101 1400 50 102 1590 60 103 1770 70 104 1940 80 105 2100 90 106 2250 100 At what level of the control variables are net benefits maximized?What is the relation between marginal benefit and maraginal cost atthis level of the control variable Control Var. Q Total Ben B(Q) Total Cost C(Q) Net Ben N (Q) Mar.B.MBQ Mar Cost MCQ Mar Net MNQ 100 1200 950 210 40 101 1400 50 102 1590 60 103 1770 70 104 1940 80 105 2100 90 106 2250 100

Explanation / Answer

MC=(TC2-TC1)/(Q2-Q1)

Total Cost C(Q)

950

1000

1060

1130

1210

1300

1400

Net benefit= TB-TC

250

400

530

640

730

800

850

at 6th control variable net benefit is maximized!

MB=(TB2-TB1)/(Q2-Q1)

MB

210

200

190

180

170

160

150

According to cost-benefit principle: MBMC, the6th control variable is optimal (it is the relation betweenmarginal benefit and maraginal cost at this level of the controlvariable)

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.