Suppose the total benefit derived from a given decision, q, is b(q) = 20q – 2q2 and the corresponding total cost is c(q) = 4 + 2q2, so that mb(q) = 20 – 4q and mc(q) = 4q. instruction: use a negative sign where appropriate. a. what is total benefit when q = 2? q = 10? when q = 2: 32 when q = 10: 150 b. what is marginal benefit when q = 2? q = 10? when q = 2: 12 when q = 10: c. what level of q maximizes total benefit? 5 d. what is total cost when q = 2? q = 10? when q = 2: 12 when q = 10: e. what is marginal cost when q = 2? q = 10? when q = 2: 8 when q = 10: f. what level of q minimizes total cost? 0 g. what level of q maximizes net benefits? 2.5 check my work

a.  b. When q = 2 Marginal Benefit = 20 – 4q = 20 - 4(2) = 20 – 8 = 12  When q = 10 Marginal benefit = 20 – 4q = 20 – 4(10) = 20 – 40 = -20[/tex]

c. Total Benefits are maximised when MB=0

Therefore, q=5 maximizes total benefits.

d. Total cost is given by

When q=2,

When q= 10

e.

f. Total cost is minimized at Q=0.  At any other level Total cost is increasing for every value of Q.

g. Net benefits are maximized when

So, q=2.5 maximizes net benefits.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; measurable outcome;