User Account

All Pages

What level of q maximizes net benefits

Assignment Help Microeconomics
Reference no: EM13314686

Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 150 + 28Q – 5Q2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) = 8.)

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?

Reference no: EM13314686

Questions Cloud

Bagels that would occur if it simply lowered the price : The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $5. After a consumer accrues 10 stamps, she receives one dozen bagels free.
What is the firm fixed cost at this level of output : The accompanying graph (top of next page) summarizes the demand and costs for a firm that operates in a perfectly competitive market.
Explain why this manager might nonetheless have a strong : Explain why this manager might nonetheless have a strong incentive to maximize the firm’s profits.
Consider now the decision problem of the agents : Consider now the decision problem of the agents. Let n denote the number of hours per month that an agent works. Write an equation relating n and l. Write the agents budget constraint. Express the budget constraint in terms of c and l. State the agen..
What level of q maximizes net benefits : Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 150 + 28Q – 5Q2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) = 8.)
Is it higher or lower than in the absence of the tax : Suppose that the Government introduces a labor tax: for each hour of labor hired, the firm needs to pay  to the Government. Find the new optimal demand for labor. Is it higher or lower than in the absence of the tax?
Consider an economy in which the labor market is competitive : Assume that the price of the consumption good (denote it by P) is exogenously given and equal to 2. Use W to denote the hourly nominal wage in the economy
An increase in the real interest rate makes current : If an agent is liquidity constrained, then an unexpected increase in transitory income of $100 can result in the agentís current consumption increasing by $100"
Affect the marginal product of any factor : Suppose that the production function is given by Y = C + KaN1-a where C is a positive constant. Does an increase in C affect the marginal product of any factor? Will it affect labor productivity?

Reviews

Write a Review

Microeconomics Questions & Answers

  Draw the game in extensive form and predict the outcome

Firm A currently monopolizes its market and earns profits of $10M.Firm B is a potential entrant that is thinking about entering the market.If B does not enter the market,

  Describe the industrial revolution

1. began in France with the development of the steam engine and then spread to the UK and the United States. 2. began in 1550 when the English learned how to use coal to replace wood as a heat source and spread to france and eventually the United S..

  Find what will happen to the amount of crime

The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, What will happen to the amount of crime

  Demand and short-run cost functions

From the scenario, assuming Katrina’s Candies is operating in the monopolistically competitive market structure and faces the following weekly demand and short-run cost functions:

  Define the quantity demand

The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries.

  Determining government purchases

What is the initial effect of the tax reduction on aggregate demand? What additional effects follow this initial effect? What is the total effect of the tax cut on aggregate demand?

  What is the minimum efficient scale in this industry

What is the long-run equilibrium price in this market? Explain intuitively, in your own words, why this is the long-run equilibrium. What is the long-run market equilibrium quantity?

  Crowding in effect depends on the sensitivity of investment

The crowding-in effect depends on the sensitivity of investment

  Suppose she feels that the first pound of potatoes is worth

Potatoes cost Janice $0.50 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and ..

  Draw a standard supply and demand diagram

Draw a standard supply and demand diagram which shows the demand for new housing units that are purchased each month, and the supply of new units built and put on the market each month.

  Characteristics of the perfect competition model

The characteristics of the Perfect competition model are flawed by to many inaccuracies and offer little or no relevance to the real world

  Differences between four market types

Summarize the differences between the four market types. Provide a general explanation of how business may maximize profit within each market type.

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