Suppose the total benefit derived from a given decision, Q, is B(Q) = 20Q – 2Q2 and the corresponding total cost is C(Q) = 4 + 2Q2. Instructions: Use a negative sign (-) where appropriate and round up your answers to no decimal. Do not round values if needed to complete other calculations. a. What is total benefit when Q = 2? Q = 10? When Q = 2: $ When Q = 10: $ b. What is marginal benefit when Q = 2? Q = 10? When Q = 2: $ When Q = 10: $ c. What level of Q maximizes total benefit? Q = units. d. What is marginal cost when Q = 2? Q = 10? When Q = 2: $ When Q = 10: $ e. What level of Q maximizes net benefits? Q =
Suppose the total benefit derived from a given decision, Q, is B(Q) = 20Q – 2Q2 and the corresponding total cost is C(Q) = 4 + 2Q2. Instructions: Use a negative sign (-) where appropriate and round up your answers to no decimal. Do not round values if needed to complete other calculations. a. What is total benefit when Q = 2? Q = 10? When Q = 2: $ When Q = 10: $ b. What is marginal benefit when Q = 2? Q = 10? When Q = 2: $ When Q = 10: $ c. What level of Q maximizes total benefit? Q = units. d. What is marginal cost when Q = 2? Q = 10? When Q = 2: $ When Q = 10: $ e. What level of Q maximizes net benefits? Q =
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the total benefit derived from a given decision, Q, is B(Q) = 20Q – 2Q2 and the corresponding total cost is C(Q) = 4 + 2Q2.
Instructions: Use a negative sign (-) where appropriate and round up your answers to no decimal. Do not round values if needed to complete other calculations.
a. What is total benefit when Q = 2? Q = 10?
When Q = 2: $
When Q = 10: $
b. What is marginal benefit when Q = 2? Q = 10?
When Q = 2: $
When Q = 10: $
c. What level of Q maximizes total benefit? Q = units.
d. What is marginal cost when Q = 2? Q = 10?
When Q = 2: $
When Q = 10: $
e. What level of Q maximizes net benefits? Q =
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