9. Suppose that the total benefit derived from a given decision Q is: B(Q)=25Q - Q² and the corresponding total cost is: C(Q) = 5+Q² a. MB (Q) = b. MC(Q) = c. What is the total benefit when Q-2? Q-10? d. What is the marginal benefit when Q-2? Q-10? e. What level of Q maximizes total benefits? f. What is the total cost when Q-2? Q-10? g. What is the marginal cost when Q-2? Q-10? h. What level of Q minimizes total cost? i. What level of Q maximizes net benefits?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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9. Suppose that the total benefit derived from a given decision Q is:
B(Q) = 25Q-Q²
and the corresponding total cost is:
C(Q) = 5+Q²
a. MB (Q) =
b. MC(Q) =
c. What is the total benefit when Q=2? Q = 10?
d. What is the marginal benefit when Q=2?Q=10?
e. What level of Q maximizes total benefits?
f. What is the total cost when Q-2? Q-10?
g. What is the marginal cost when Q-2? Q-10?
h. What level of Q minimizes total cost?
i. What level of Q maximizes net benefits?
Transcribed Image Text:9. Suppose that the total benefit derived from a given decision Q is: B(Q) = 25Q-Q² and the corresponding total cost is: C(Q) = 5+Q² a. MB (Q) = b. MC(Q) = c. What is the total benefit when Q=2? Q = 10? d. What is the marginal benefit when Q=2?Q=10? e. What level of Q maximizes total benefits? f. What is the total cost when Q-2? Q-10? g. What is the marginal cost when Q-2? Q-10? h. What level of Q minimizes total cost? i. What level of Q maximizes net benefits?
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