Suppose B(Q)= 5Q − Q² and C(Q)= 1 + Q².Then,net benefits are ______ when Q equals __________ units since the second-order condition is ______________.

Name: Suppose B(Q)= 5Q − Q 2 and C(Q)= 1 + Q 2 .Then,net benefits are ______ when Q equals __________ units since the second-order condition is ______________.
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Question

Quizplus · Accepted Answer

The net benefits are maximized at Q = 5/4 units because the second-order condition is negative, indicating a concave (downward) curve at the maximum point.

Suppose B(Q)= 5Q − Q2 and C(Q)= 1 + Q2

Suppose B(Q)= 5Q − Q² and C(Q)= 1 + Q²