Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice

Exercise 1

Assume the only choice variable is x. The total benefit function is B ( x ) = 170 x - x 2 , and the cost function is C ( x ) = 100 - 10 x + 2 x 2.
a. What are the marginal benefit and marginal cost functions?
b. Set up the net benefit function and then determine the level of x that maximizes net benefit.
c. What is the maximum level of net benefit?