Corresponding marginal benefit and marginal cost functions

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Reference no: EM131242495

Suppose Activity A has the following Total Benefit (TB) and Total Cost (TC) and the corresponding marginal benefit (MB) and marginal cost (MC) functions:

B(A) = 2,500A − 10A2

C(A) = 500A + 15A2

MB(B) = 2,500 − 20A

MC(A) = 500 + 30A

a. What is the optimal activity level of A?

b. What is the total benefit and the total cost of the optimal activity level?

c. What is the net benefit to be derived at the optimal activity level?

Reference no: EM131242495

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