Suppose that the total benefit and total cost from a company are given by the following equations: TB(Q) = 100 + 36Q – 4Q2 and TC(Q) = 80 + 12Q + 1.2Q2. Instructions: Round up your answers to no decimals. Do not round if the value is used for other calculations. The equation for the net benefits is: NB =  + Q^ + Q^ What are the net benefits when Q = 2 and Q = 6? NB(2) = $, NB(6) = $ The equation for the marginal net benefits. MNB(Q) =  + Q^

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
  1. Suppose that the total benefit and total cost from a company are given by the following equations:

    TB(Q) = 100 + 36Q – 4Q2 and TC(Q) = 80 + 12Q + 1.2Q2.

    Instructions: Round up your answers to no decimals. Do not round if the value is used for other calculations.

    1. The equation for the net benefits is: NB =  + Q^ + Q^
    2. What are the net benefits when Q = 2 and Q = 6? NB(2) = $, NB(6) = $
    3. The equation for the marginal net benefits. MNB(Q) =  + Q^
    4. What are the marginal net benefits when Q = 2? Q = 6? MNB(2)= $, MNB(6) = $
    5. What level of Q maximizes net benefits?  units.
    6. At the value of Q that maximizes net benefits, what is the value of marginal net benefits? $
    7. At the value of Q that maximizes net benefits, what is the total profits? Profits = $
    8. The Q that maximizes total benefit is: Q =  units, and the profits at this level of Q is: Profits = $ 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education