Solved

Activity a Has the Following Marginal (MB) and Marginal Cost

Question 20

Short Answer

Activity A has the following marginal (MB) and marginal cost (MC) functions:
MB = 2,500 - 20A
MC = 500 + 30A
where MB and MC are measured in dollars.
-The optimal level of the activity is ________ units. At the optimal level of activity, marginal benefit is $_________ and marginal cost is $__________.
The total benefit (TB) and total cost (TC) functions for the activity are:
TB = 2,500A -10A2
TC = 500A + 15A2
where TB and TC are measured in dollars.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents