Suppose the total benefit derived from a continuous decision, Q. is B(Q) = 20Q - 20 and the corresponding total cost is C(Q) =4+20", so that MB(Q)= 20 - 4Q and MC(Q)= 4Q. (LOI, LO6, LO7) a. What is total benefit when 0=2? 0= 10? b. What is marginal benefit when Q = 2? Q = 10? c. What level of Q maximizes total benefit? d. What is total cost when Q = 2? Q = 10? e. What is marginal cost when Q = 2? Q = 10? f. What level of Q minimizes total cost? g. What level of Q maximizes net benefits?
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Suppose the total benefit derived from a continuous decision, Q. is B(Q) = 20Q - 20 and the correspo...
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