A decision maker can choose the levels of two activities, A and B, so as to maximize net benefits. Activity A costs $100 per unit and activity B Costs $200 per unit. The marginal benefit functions of A and B are MBA = 30A - 20B MBB= -10A + 40B The optimal level of activity A & B are: Select one: a. A = 8 b. A = 12 B = 17 C. B=5 A = 6 B=8 d. A = 11 B = 25 e. A = 8 B = 7 X

A decision maker can choose the levels of two activities, A and B, so as to maximize net benefits. Activity A costs $100 per unit and activity B Costs $200 per unit. The marginal benefit functions of A and B are MBA = 30A - 20B MBB= -10A + 40B The optimal level of activity A & B are: Select one: a. A = 8 b. A = 12 B = 17 C. B=5 A = 6 B=8 d. A = 11 B = 25 e. A = 8 B = 7 X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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