User Account

All Pages

What is the value of marginal net benefits

Assignment Help Business Economics
Reference no: EM132140754

1. Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B(Q) = 100 + 36Q - 4Q2 and C(Q) = 80 + 12Q. [Note: MB(Q) = 36 - 8Q and MC(Q) = 12.]

a. Write out the equation for the net benefits

b. What are the net benefits when Q = 1? Q = 5?

c. Write out the equation for the marginal net benefits.

d. What are the marginal net benefits when Q = 1? Q = 5?

e. What level of Q maximizes net benefits?

f. At the value of Q that maximizes net benefits, what is the value of marginal net benefits?

2. Suppose the total benefit derived from a continuous decision, Q, is B(Q) = 20Q - 2Q2 and corresponding total cost is C(Q) = 4 + 2Q2 so that MB(Q) = 20 - 4Q and MC(Q) = 4Q.

a. What is total benefit when Q = 2? Q = 10?

b. What is marginal benefit when Q = 2? Q = 10?

c. What level of Q maximizes total benefit?

d. What is total cost when Q = 2? Q = 10?

e. What level of Q minimizes total cost?

f. What level of Q maximizes net benefits?

Reference no: EM132140754

Questions Cloud

Target growth initiatives and continued cost reductions : Explain the benefits that could may come from implementing Supply Chain Advisory Council to oversee OnTarget growth initiatives and continued cost reductions?
What you anticipate to be your greatest struggles : Please reflect on what you have been undergoing during the first few weeks as a new graduate registered nurse. Tell me what you anticipate to be your greatest.
Determine the equilibrium price and quantity : Determine the equilibrium price and quantity. Show the equilibrium graphically.
Compute the journal entry to record the issuance : Pearl Co. is building a new hockey arena at a cost of $2,620,000. Compute the journal entry to record the issuance of the bonds on January 1, 2016
What is the value of marginal net benefits : At the value of Q that maximizes net benefits, what is the value of marginal net benefits?
Summarize components of each HRIS software system : Summarize components of each HRIS software system in a table format that visually differentiates software packages from the other.
What is the maximum amount of expected losses : What is the maximum amount of expected losses that the Legal Entity can expect to sustain without being considered a variable interest entity (VIE)
When would you use bupropion for monotherapy : When would you consider adding bupropion to an SSRI and when would you use bupropion for monotherapy? The response must be typed.
Configuring and troubleshooting medium-size networks : ITNE2003 Install, Configure, Operate and troubleshoot Medium-Size Networks - complete the tasks in packet tracer and paste screen shots

Reviews

Write a Review

Business Economics Questions & Answers

  Assume that initially money supply-increase is realistic

Assume that initially Money Supply is equal to $100 bn., cash reserves are equal to $25bn, and the required reserve ratio is equal to 0.25. By how much will Money Supply change if cash reserves increase by $5 bn.? Do you think this increase is realis..

  Determine the long-run level of real GDP

Which of the following does NOT determine the long-run level of real GDP?

  Assigned to conduct an audit of municipal police department

Assume you are assigned to conduct an audit of a municipal police department that has been awarded a state and federal grant to reduce driving while intoxicated violations over an 18- month period. What documents, statistics and analysis would you wa..

  How will it affect the productivity-technological innovatio

How will it affect the productivity, technological innovation, and GDP if the financial industry is able to lure highly skilled graduates into the financial

  Explain the role of an economist

Explain the role of an economist as a scientist as well as a policymaker - Explain the interconnections displayed in the circular flow model with specific

  File handling and applications

Laramie Park District has files of participants in its summer and winter programs this year. Each file is in participant ID number order and contains.

  Does the budget deficit increase or decrease

If the federal government increases government purchases and lowers taxes at the same time, does the budget deficit increase or decrease? Discuss briefly with graphs

  Follows the net marginal benefit principle

Which of the following is a decision that follows the net marginal benefit principle?

  Merging of beer producers

In the article, "Hopsopoly," by Rob Larson, the merging of beer producers is examined. Suppose that the cell phone service companies Verizon

  Consider a small barter economy with only two individuals

Consider a small barter economy with only two individuals, John and Mark. John's preferences for the two available goods (x) and (z) are given by: Draw the Edgeworth box for this economy including example indifference curves for each individual and t..

  Domestic policies without regard to the larger institution

The World Trade Organization to the European Union and many more organizations work as multinational institutions. In recent years, we have learned about how the Euro zone has become compromised because of member states engaging in domestic policies ..

  Data on health expenditure as a percentage of gdp

Using the data on health expenditure as a percentage of GDP for 2015, which country has the highest expenditure (as a share of GDP)?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd