Suppose total benefits and total costs are given by B(Y)= 600Y − 12Y² and C(Y)= 20Y².What is the maximum level of total benefits? A) 2,812.5 B) 7,500 C) 1,600 D) None of the statements associated with this question are correct.

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Quizplus · Accepted Answer

The maximum level of total benefits is found by setting the derivative of the total benefits function, B(Y) = 600Y - 12Y^2, equal to zero and solving for Y. This gives the output level at which benefits are maximized. Then, substituting this Y back into the B(Y) function gives the maximum total benefits. The calculation steps are omitted here, but following through them gives a maximum total benefits value of 7,500.

Suppose Total Benefits and Total Costs Are Given by B(Y)=