Complete the accompanying table and answer the accompanying questions: a. At what level of the control variable are net benefits maximized? b. What is the relationship between marginal benefit and marginal cost at this level of the variable? Control variable Q Total benefits B(Q) Total cost C(Q) Net benefits N(Q) Marginal benefit MB(Q) Marginal cost MC(Q) Marginal Net benefits MNB(Q) 100 1200 950   210 60   101 1400       70   102 1590       80   103 1770       90   104 1940       100   105 2100       110   106 2250       120   107 2390       130   108 2520       140   109 2640       150   110 2750       160

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Complete the accompanying table and answer the accompanying questions:

a. At what level of the control variable are net benefits maximized?

b. What is the relationship between marginal benefit and marginal cost at this level of the variable?

Control variable Q Total benefits B(Q) Total cost C(Q) Net benefits N(Q) Marginal benefit MB(Q) Marginal cost MC(Q) Marginal Net benefits MNB(Q)
100 1200 950   210 60  
101 1400       70  
102 1590       80  
103 1770       90  
104 1940       100  
105 2100       110  
106 2250       120  
107 2390       130  
108 2520       140  
109 2640       150  
110 2750       160  

 

Expert Solution
Step 1

In the table above, the control variable is "Q" or the level of production or consumption of a good or service. The total benefits (B), total cost (C), and net benefits (N) are calculated based on the level of the control variable Q.

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