Suppose total benefits and total costs are given by B(Y)= 600Y − 12Y² and C(Y)= 20Y².What is the maximum level of net benefits? A) 2,500.75 B) 2,812.5 C) 1916.4 D) None of the statements associated with this question are correct.

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Quizplus · Accepted Answer

To find the maximum level of net benefits, we need to calculate total benefits minus total costs (B(Y) - C(Y)) and find where it is maximized. B(Y) - C(Y) = 600Y − 12Y² - 20Y² = 580Y - 32Y² To find the maximum, we take the derivative and set it equal to zero: d/dY (580Y - 32Y²) = 580 - 32² = 0 Solving for Y, we get Y = (32/580)² Substituting this value of Y back into the equation for net benefits, we get: B(Y) - C(Y) = 580(32/580)² - 32² = 18.4² Therefore, the maximum level of net benefits is 18.4². To find the specific value, we would need to know the value of ².

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