Problem
Identifying Optimal Quantity.
|
Quantity
|
Total Benefit
|
Marginal Benefit
|
Total Cost
|
Marginal Cost
|
Total Net Benefit
|
Marginal Net Benefit
|
|
0
|
0
|
---
|
15
|
---
|
-15
|
---
|
|
1
|
60
|
60
|
25
|
10
|
35
|
50
|
|
2
|
115
|
55
|
40
|
15
|
75
|
40
|
|
3
|
165
|
50
|
60
|
20
|
105
|
30
|
|
4
|
210
|
45
|
85
|
25
|
125
|
20
|
|
5
|
250
|
40
|
115
|
30
|
135
|
10
|
|
6
|
285
|
35
|
150
|
35
|
135
|
0
|
|
7
|
315
|
30
|
190
|
40
|
125
|
-10
|
|
8
|
340
|
25
|
235
|
45
|
105
|
-20
|
Task
1. What quantity will maximize total net benefits?
2. What is the marginal benefit at the optimal quantity?
3. What is the marginal cost at the optimal quantity?
4. What is the total net benefit at the optimal quantity?