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

Question 21

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.
-For the optimal level of the activity in part c, the total benefit is $_________, the total cost is $_________, and the net benefit is $__________.

Correct Answer:

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84,000; 44...

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