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Consider the following total benefit (TB) and total cost (TC) functions and the corresponding marginal benefit (MB) and marginal cost (MC) functions:
TB = 150 + 28 Q - 5 Q2 MB = 28 - 10 Q
TC = 100 + 8 Q MC = 8
generally MNB = MB - MC. Derive the equation for marginal net benefits
Fred Smith owns a British Consul, a security which pays the equivalent of $1000 U.S. each year on September 15, forever. Fred has recently considered selling the security. The current interest rate is 10% a. What is the minimum sales price he must..
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