What level of q maximizes total benefit

Assignment Help Econometrics
Reference no: EM13202173

Suppose the total benefit derived from a given decision, Q, is B(Q)=25Q-Q^2 and the corresponding total cost is C(Q) = 5 + Q^2, so that MB(Q) = 25 -2Q and MC(Q) = 2Q

A.)what is total benefit when Q=2 when Q=10

B.)What is marginal benefit when Q=2 when Q=10

C.) What level of Q maximizes total benefit?

Reference no: EM13202173

Questions Cloud

Find the shortest length of cable needed : A steep mountain is inclined 75 degrees to the horizontal and rises 3400 feet above the surrounding plain. A cable car I to be installed from a point 800 feet from the base to the top of the mountain. Find the shortest length of cable needed.
Risk management and measurement issues : Presentation of work in the prescribed format, free from spelling and grammatical errors - higher volume of traffic-both people in cars and cargo in trucks- a safe financial system will help generate higher stable economic growth
Use differentials to estimate the maximum and relative error : Use differentials to estimate the maximum and relative error in the calculated surface area. (Round maximum error to the nearest whole number and relative error to three decimal places.)
Give a formula for the annual inventory control costs : Give a formula for the annual inventory control costs, C, as a function of the maximum storage size, s. (This would only be valid for the first five years.)
What level of q maximizes total benefit : Suppose the total benefit derived from a given decision, Q, is B(Q)=25Q-Q^2 and the corresponding total cost is C(Q) = 5 + Q^2, so that MB(Q) = 25 -2Q and MC(Q) = 2Q A.)what is total benefit when Q=2 when Q=10
What should the dimensions be to maximize the total area : a farmer wants to fence off land along a river into five equal areas by using on section of fence parallel to the river and six sections perpendicular to it. what should the dimensions be to maximize the total area using 1200 feet of fence?
What is the natural length l of the spring : If 5 J of work are needed to stretch a spring from 9 cm to 10 cm and 7 J are needed to stretch it from 10 cm to 11 cm, what is the natural length L of the spring?
What is the appropriate compensating variation : The constant per unit price of M is $30; the constant per unit price of T is $20; and Bharat has $300 to spend on these activities. If the price of M rises to $35, what is the appropriate compensating variation.
What are the dimensions of the window that transmits : If the colored glass transmits only half as much light per square foot as the clear glass does, what are the dimensions of the window that transmits the most light? (The perimeter is still 100 feet.)

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

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!

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