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Your firm research department has estimated your total revenues to be R(Q) = 1,500Q – 4Q2 and your total costs to be 50 + 1.5Q2. (Note that MB = 1,500 - 7Q and MC = 3Q).
a. What level of Q maximized net benefits?
b. What is marginal benefit at this level of Q?
c. What is marginal cost at this level of Q?
Relates to content and skills covered in Week 7 of the Weekly Study Program, Chapter 32 of Ganset al. (2012). Refer here to the comments given for Week 7 for assistance in answering this question.
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