Your firm’s research department has estimated your total revenues to be R(Q) = 30, 000Q − 80Q2 and your total costs to be C(Q) = 1, 000 + 20Q2. (Note that the marginal functions are MR(Q) = 30, 000 − 160Q and MC(Q) = 40Q).What level of Q maximizes net benefits?What is the marginal benefit and marginal cost at this level of Q?What is the maximum level of net benefits?What is another word for net benefits in this example?

Total revenue: Total income is the measure of cash that an organization procures by selling its…

Answered: Your firm’s research department has…

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

Your firm’s research department has estimated your total revenues to be R(Q) = 30, 000Q − 80Q² and your total costs to be C(Q) = 1, 000 + 20Q². (Note that the marginal functions are MR(Q) = 30, 000 − 160Q and MC(Q) = 40Q).

What level of Q maximizes net benefits?
What is the marginal benefit and marginal cost at this level of Q?
What is the maximum level of net benefits?
What is another word for net benefits in this example?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

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