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 =

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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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