You own a firm that offers organic coconut oil. Your objective is to detemlne the number of coconut oil to be produced each month in order to maximize revenues. The table below shows the total benefits (revenues) and costs of producing various volumes of coconut oil (. Control Variable (in 500 ml bottle) Total Benefits Total Costs (B) (C) 100 200 300 400 2000 3800 5400 6800 500 600 700 800 900 1,000 8000 9000 9800 10400 10800 11000 100 300 600 1000 1500 2100 2800 3600 4500 5500 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 llustrate 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.) (-)

You own a firm that offers organic coconut oil. Your objective is to detemlne the number of coconut oil to be produced each month in order to maximize revenues. The table below shows the total benefits (revenues) and costs of producing various volumes of coconut oil (. Control Variable (in 500 ml bottle) Total Benefits Total Costs (B) (C) 100 200 300 400 2000 3800 5400 6800 500 600 700 800 900 1,000 8000 9000 9800 10400 10800 11000 100 300 600 1000 1500 2100 2800 3600 4500 5500 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 llustrate 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.) (-)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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