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Write out the equation for the net benefits

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Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) 150 28Q 5Q2 and C(Q) 100 8Q. (Note: MB(Q) 28 10Q and MC(Q) 8.)

a. Write out the equation for the net benefits.
b. What are the net benefits when Q 1? Q 5?
c. Write out the equation for the marginal net benefits.
d. What are the marginal net benefits when Q 1? Q 5?
e. What level of Q maximizes net benefits?
f. At the value of Q that maximizes net benefits, what is the value of marginal net benefits?

Reference no: EM131192008

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