Cost-Benefit Analysis: How It's Used, Pros and Cons
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SOLVED: Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations: B(Q) = 100 36Q − 4Q^2 and C(Q) = 80 12Q. (Note: MB(Q) = 36 − 8Q and MC(Q) = 12.) (Hint: Write down the Net benefit and marginal net benefit equations) What are the net benefits when Q = 1?
SOLVED: Suppose that the total benefit and total cost from a conti…
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