1.Use the marginal analysis technique to determine the quantity of organic coconut oil that will maximize net benefits. Present results in table form and highlight the maximizinglevel. 2. Graphically illustrate letter B. Separate the graphs for TB – TC approach, MB = MC rule, and net benefit (maximum). The sequence of the graph: (1) TB – TC approach (topmost graph); (2) net benefit (middle graph); and (3) MB, MC, & MNB (last, 3rd graph). But be sure that the graphs are parallel in X-axis so as to be consistent in the results. (Label your graphs accordingly and appropriately.) PROBLEMYou are the owner of a business that sells premium natural-organic soap. Your goal is todecide the number of soap (S) to be manufactured per month to maximize profits. The totalbenefits (revenues) and costs of manufacturing different quantities of soap are given in thetable below.ControlTotal BenefitsTotal CostsVariable SB(S)C(S)120010380305406068010080015090021098028081,0401,0801,1003609.450105501. Use the marginal analysis technique to determine the quantity of soaps that willmaximize net benefits. Present results in table form and highlight the maximizing level.2. Graphically illustrate letter B. Separate the graphs for TB – TC approach, MB = MC rule,and net benefit (maximum). The sequence of the graph: (1) TB – TC approach (topmostgraph); (2) net benefit (middle graph); and (3) MB, MC, & MNB (last, 3rd graph). But besure that the graphs are parallel in X-axis so as to be consistent in the results. (Labelyour graphs accordingly and appropriately.)34567oo2

The total revenue received by a firm in the market is the total payments received from the sale of…

Answered: You are the owner of a business that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

1.Use the marginal analysis technique to determine the quantity of organic coconut oil that will maximize net benefits. Present results in table form and highlight the maximizing
level.

2. Graphically illustrate letter B. Separate the graphs for TB – TC approach, MB = MC rule, and net benefit (maximum). The sequence of the graph: (1) TB – TC approach (topmost graph); (2) net benefit (middle graph); and (3) MB, MC, & MNB (last, 3rd graph). But be sure that the graphs are parallel in X-axis so as to be consistent in the results. (Label your graphs accordingly and appropriately.)

PROBLEM
You are the owner of a business that sells premium natural-organic soap. Your goal is to
decide the number of soap (S) to be manufactured per month to maximize profits. The total
benefits (revenues) and costs of manufacturing different quantities of soap are given in the
table below.
Control
Total Benefits
Total Costs
Variable S
B(S)
C(S)
1
200
10
380
30
540
60
680
100
800
150
900
210
980
280
8
1,040
1,080
1,100
360
9.
450
10
550
1. Use the marginal analysis technique to determine the quantity of soaps that will
maximize net benefits. Present results in table form and highlight the maximizing level.
2. Graphically illustrate letter B. Separate the graphs for TB – TC approach, MB = MC rule,
and net benefit (maximum). The sequence of the graph: (1) TB – TC approach (topmost
graph); (2) net benefit (middle graph); and (3) MB, MC, & MNB (last, 3rd graph). But be
sure that the graphs are parallel in X-axis so as to be consistent in the results. (Label
your graphs accordingly and appropriately.)
34567oo2

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions