Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice

Exercise 2

The only choice variable is x. The total benefit function is B ( x ) = 100 x - 2 x 2 , and the total cost function is

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. (Use the positive value of x. )
c. What is the maximum level of net benefit?