Explain marginal cost and benefit

Assignment Help Operation Research

Reference no: EM13710186

Compute the following problem using Marginal cost and benefit

Problem-The only choice variable is x. The total benefit function is B(x) = 100x - 2x2, and the total cost function is C(x) = 1/3 x3 - 6x2 + 52x + 80.

Part 1- What are the marginal benefit and marginal cost functions?

Part 2- Set up the net benefit function and then determine the level of x that maximizes net benefit. (Use the positive value of x.)

Part 3- What is the maximum level of net benefit?

I need help to explore the marginal cost and benefit and also describe the functionality of marginal benefit and cost.

Reference no: EM13710186

Questions Cloud

A ladder is leaning against a building so that the distance : A ladder is leaning against a building so that the distance from the ground to the top of the ladder is 1 foot less than the length of the ladder. Find the length of the ladder if the distance from the bottom of the ladder to the building is 3..

Let t : p2 ? p2 be the linear transformation defined : Let T : P2 → P2 be the linear transformation defined by T(a + bx + cx2) = 3a - cx2: Let f = f(x) = 1 + x.

Brief description about redlands air budgeting : Compute Redlands Airs's breakeven point in hours of flight instruction. Determine the amount of revenue it needs to breakeven.

Find the real and imaginary parts of the complex number : Write down this statement as a differential equation and find at what time the concentration of bacteria becomes double its initial value - Find the real and imaginary parts of the complex number

Explain marginal cost and benefit : What are the marginal benefit and marginal cost functions. Set up the net benefit function and then determine the level of x that maximizes net benefit.

Explanation about lowest total cost : A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives.

Following cost and revenue functions : An entrepreneur has the following cost and revenue functions: TC = 30 + 3Q and TR = 4Q. calculate the equilibrium quantity algebraically and graphically at the break-even point.

Explore steven''s four levels of measurement : Give examples of Stevens' four levels of measurement, such as nominal, ordinal, interval, and ratio scales.

Capacity utilization rate calculations : A manufacturing Shop is designed to operate most efficiently at an output of 550 units per day. In the past month the plant produced 490 units. What was its capacity utilization rate last month.

User Account

All Pages