Determine what is the maximum level of net benefit

Assignment Help Econometrics
Reference no: EM13237751

Assume the only choice variable is x. The total benefit function is B(x) =170x - x2 and the cost function is C(x) = 100 - 10x + 2x2

a) What are the marginal benefit and marginal cost functions?

b) Set up the net benefit functionand then determine the level of x that maximizes net benefit

c) What is the maximum level of net benefit?

Reference no: EM13237751

Questions Cloud

Find the price and quantity that maximizes companies profit : Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P=1000-10Q Total Revenue: TR=1000Q-10QZ
Which of the following innovations was developed first : Which of the following innovations was developed first?
With the introduction of christianity to areas like hibernia : With the introduction of Christianity to areas like Hibernia (ancient Ireland) and the British Isles, as well as to the Franks and later the Goths, almost immediately we see this new faith reflected in the works of these very different areas.
Explain what does the reveal about the original dry powder : It is then analyzed on the ICP. The ICP results show the liquid to be 64.8 PPM Na and 43.7 PPM P. What does this reveal about the original dry powder
Determine what is the maximum level of net benefit : Assume the only choice variable is x. The total benefit function is B(x) =170x - x2 and the cost function is C(x) = 100 - 10x + 2x2 a) What are the marginal benefit and marginal cost functions
What is deplicited in the movie restrepo : In thinking about the Cold war what are some similarties and differences between the conflicts and what is deplicited in the movie Restrepo?
Find what is l at the point of cost minimization : (a) Consider a firm with the following production function. Q = 2*L*L + K*K. The price of capital (K) is $100 and the price of labor (L) is $50. The marginal product of labor is 4L and marginal product of capital is 2K.
What was the bullets speed as it left the barrel? : A rifle is aimed horizontally at a target 50.0 m away, What was the bullet's flight time and What was the bullet's speed as it left the barrel
What is the profit maximizing condition if the market price : If the cost function for John's Shoe Repair is C(q) = 100+10q-q^2+(1/3)q^3, what is the firm's marginal cost function What is its profit maximizing condition if the market price is p What is its supply curve

Reviews

Write a Review

Econometrics Questions & Answers

  What would the population equal 100 years from now

Suppose the world population today is 7 billion, and suppose this population grows at a constant rate of 3% per year from now on. (This rate is almost certainly much faster than the future population growth rate)

  Compute the dollar gain or loss to domestic consumers

where P is the price in cents per kilo and Q is the quantity in millions of kilos. Canada is a small producer in the world chick pea market, where the current world price (which will not be affected by anything we do) is 60 cents per kilo. The Gov..

  Explain will the money supply expand more for federal resrve

Assume that the reserve requirement is 5%. All other things equal, will the money supply expand more if the Federal Reserve busy $2,000 worth of bonds or if someone deposits in a bank $2,000 that he had been hiding in his cookie jar

  Who was charging the monopoly price per beer

Illustrate that the previous manager, who was charging the monopoly price per beer, was not maximizing profits as accused by the owner. That is, find an alternate pricing scheme that results in more profits per customer than the monopoly scenario.

  Find what is the modified b-c ratio for the project

An outer beltway is being planned for a metropolitan area in your state. The initial cost is estimated to be $150M. Benefits are expected to be $8M a year. Annual maintenance costs are expected to be about $800K.

  Calculate the predicted probabilities

Calculate the predicted probabilities and verify that all the ?tted values are between 0 and 1. What is the smallest value you observe? And the largest?

  What is the expected return on the equity

Company A just paid a $3.00 dividend per share. The dividend is expected to grow at a 4% rate indefinitely. The beta of the stock of Company A is 1.5. The market risk premium is 8% and the risk-free rate is 3%. (a) What is the expected return on t..

  Will a consumer purchase exact 5 bottles of wine

A consumer has $100 to divide between purchasing wine and quiche. Suppose wine costs $10 per bottle if the consumer purchases up to 5 bottles. After that, it is $5 per bottle. Suppose quiche is $5 each. Please draw the budget line.

  Find amount of each cash flow in equal quarterly cash flow

The first cash flow of a 25 year series of quarterly is equal to 35000. Each cash flow in the series increases by 800. Find the amount of each cash flow in an equal quarterly cash flow series that is equivalent to the increasing cash flow series.

  Find the level of production at which process layout starts

Choose either $1,350,000 or $1,750,000 to be the more appropriate fixed cost for a product layout, and consider the other value as the fixed cost for a process layout. Similarly, choose either $240 or $310 to be the variable costs for the layouts.

  Describe why to ignore the time value of money

Normal people are willing to pay $250 and their desire to purchase doesn't vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iphone. Assume that there are equal numbers of each customer type and the MC of..

  What is amount of deadweight weight loss

Suppose per unit tax, T is imposed on buyers. Then what is the equilibrium quantity and equilibrium price? Now, assume T=30, then what will be equilibrium price and quantity. (Hint: use P is the price producer receives, and P+T is price paid by th..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd