16Q and MC = 4Q.) a. What level of Q maximizes net benefits - (profits)? b. What is the maximum level of net benefits (profits)?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Your firm's research department has
estimated your total revenues to be R(Q)
= 3,000Q - 8Q and your total costs to be
C (Q) = 100 + 2Q. (Note that MB = 3,000
16Q and MC = 4Q.)
a. What level of Q maximizes net benefits
(profits)?
b. What is the maximum level of net
benefits (profits)?
Transcribed Image Text:Your firm's research department has estimated your total revenues to be R(Q) = 3,000Q - 8Q and your total costs to be C (Q) = 100 + 2Q. (Note that MB = 3,000 16Q and MC = 4Q.) a. What level of Q maximizes net benefits (profits)? b. What is the maximum level of net benefits (profits)?
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