1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Jet001 [13]
3 years ago
11

Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations:

Business
1 answer:
DedPeter [7]3 years ago
5 0

Answer:

A)= 20+24Q-4Q^{2} (This is the equation for the net benefits)

B) 40; 40

C)MNB(Q)= 24-8Q

D) 16; -16

E) Q=3

F)0

Explanation:

a) To write out the equation for the net benefits.

First, net benefits represents the difference obtained when the total benefits exceed the total costs derived form Q units of the control variable

Based on the definition, the equation is as follows

N(Q)= B(Q) - C(Q)

representing

N(Q)= The Net benefits that are derived from Q level of control variable

B(Q)= The total benefits derived from Q units of control variable

C(Q)= The total cost form Q units of control variable

As we have been given the following:B(Q)= 100 + 36Q - 4Q^{2} and C(Q) = 80 +12Q

This means:

N(Q)= 100+36Q-4Q^{2}- (80+12Q)

= 100+36Q-4Q^{2}-80-12Q

=100-80+36q-12Q-4Q^{2}

=20+24Q-4Q^{2}

= 20+24Q-4Q^{2} (This is the equation for the net benefits)

b) Determine he net benefits when Q = 1 and Q=5

Step 1) when Q=1 we use the formula 20+24Q-4Q^{2}

= 20+24Q-4Q^{2}

= 20(24x1)-(4x (1^{2))

=20+24-4

=40

Step 2) when Q=5 we use the formula 20+24Q-4Q^{2}

= 20+24Q-4Q^{2}

= 20(24x5)-(4x (5^{2))

=20+120-4x25

=140-100

=40

c)To write out the equation for the marginal net benefits

Marginal net benefits represent the change experienced in net benefits with change in one unit of the control variable

The formula therefore is as follows:

MNB(Q)=MB (Q)-MC(Q)

Representing

MNB (Q)= The marginal net benefits at Q level of control variable

MB(Q)= marginal benefits

MC(Q)=Marginal Costs

We are already given: MB(Q) = 36 – 8Q and MC(Q) = 12.)

This means

MNB(Q)=MB (Q)-MC(Q)

= 36-8Q-12

36-12-8Q

=24-8Q

MNB(Q)= 24-8Q

d) Find the marginal net benefits

Step 1) when Q=1 we use the formula for marginal net benefit MNB(Q)= 24-8Q

=MNB(Q)= 24-8(1)

= 16

Step 2) when Q=5 we use the formula for marginal net benefit MNB(Q)= 24-8Q

=MNB(Q)= 24-8(5)

=24-40

=-16

e) Calculate the maximum net benefits which represent the maximum level where the marginal costs= marginal benefits (it is a control variable level).

MB(Q)=MC(C)

MB(Q)= Marginal benefits

MC(Q)= Marginal Costs

We already know that MB(Q) =36-8Q and MC(Q)=12

Therefore, maximum benefit

= MB(Q)= MC(Q)

=36-8Q=12

8Q=36-12

8Q= 24

Q= 3.

This means that when Q is 3, then the net benefits will be at its maximum level

f) Compute marginal net benefits which is the difference between the marginal costs and benefits

MNB(Q)=MB(Q)-MC(Q)

MNB(Q)= Marginal net benefits

MB(Q)= Marginal benefits

MC(Q)= Marginal Costs

we already know that  MB(Q) =36-8Q and MC(Q)=12

MNB(Q)= 36-8Q-12

=36-12-8Q

=24-8Q

Since the maximum level where net benefits are highest is 3 as calculated above, we then replace Q with 3 in the equation

MNB(Q)= =24-8(3)

= 24-24

=0

This means at Q level of 3, the net costs will be equal to the net benefits and the net benefits are at the maximum level.

You might be interested in
Nick and Dale owned Buddy Corporation and had contacted Kurt's Warehousing to about storing some goods. Per the warehouse receip
pantera1 [17]

Answer:

Flex warehousing

Explanation:

Flex warehousing also known as Public Warehousing, is a form of warehousing in which various firms seek to store high-turnover product in spaces for short periods of time.

It is a type of warehouse space which allows many clients' products to be received, handled, stored, and transported out in a flexible environment.

It is used to cater for overflow of goods, so as to maximize the space and labor reserved for only one contract client at a time.

Hence , in this case, this is an example of FLEX WAREHOUSING.

8 0
3 years ago
Cari Chair Company manufactures rocking chairs. The estimated number of rocking chair sales for each of the last three months of
tester [92]

Answer:

Production December=  15,000

Explanation:

Giving the following information:

Month Unit Sales

October 10,000

November 14,000

December 15,000

Finished goods inventory at the end of November was 4,000 units.

<u>To calculate the production required for December, we need to use the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

Production=  15,000 + 16,000*0.25 - 4,000

Production=  15,000

4 0
3 years ago
An economist for a bicycle company predicts that a rise in consumer incomes will increase the demand for bicycles. this predicti
Neporo4naja [7]

When an economist makes a prediction that a rise in consumer incomes will increase the demand for bicycles sold by a bicycle company, it is made on assumption that bicycles are normal goods. Therefore, the option A holds true.

<h3>What is the significance of normal goods?</h3>

The normal goods or services being sold in the market of an economy can be referred to or considered as goods that have a direct relation with the demand for such goods, which are affected by consumer income.

As per the behavior of normal goods, it can be inferred that their demands increases with a given increase in the disposable income of the consumer, such as the one in the condition given above.

Therefore, the option A holds true and states regarding the significance of normal goods.

Learn more about normal goods here:

brainly.com/question/24100151

#SPJ4

An economist for a bicycle company predicts that a rise in consumer incomes will increase the demand for bicycles. This prediction assumes that bicycles are _____.

A. Normal goods

B. Luxury Goods

C. Inferior Goods

D. None of the Above

6 0
2 years ago
Tallow​, Inc. had reported the following​ balances: LOADING...​(Click the icon to view the 2018 and 2019 ​balances.) 11. Compute
Pachacha [2.7K]

Answer:

Explanation:

Rate of return on common stockholder's equity for 2019:

= (Net Income - Preferred Dividend) / Av. common stockholder's equity

= ($94,000 - $26,000) / $312,000

= $68,000 / $312,000

= 0.2179 or 21.79%

Av. common stockholder's equity 2019 :

Total stockholder's equity 2018 ( Common) = Total stockholder's equity - Stockholder's Equity attributable to preferred

= $318,000 - $22,000

= $296,000

Total stockholder's equity 2019 ( Common) = Total stockholder's equity - Stockholder's Equity attributable to preferred

= $350,000 - $22,000

= $328,000

Av. common stockholder's equity 2019 = ($296,000 + $328,000) / 2 = $312,000

7 0
3 years ago
A firm has sales of $1,220, net income of $226, net fixed assets of $544, and current assets of $300. The firm has $101 in inven
Nady [450]

Answer:

11.97%

Explanation:

Common size statement value of inventory is where all accounts are expressed as a percentage of total assets.

Total assets = Net fixed assets + Current assets

= $544 + $300

= $844

Common size statement value of inventory = Inventory ÷ Total assets

= $101 ÷ $844

= 0.1197

= 11.97%

4 0
3 years ago
Other questions:
  • How are students chosen for work-study programs? first-come, first-served those in the most financial need by qualifying with sp
    8·1 answer
  • The income elasticity of demand for a food is unity. a consumer's monthly income is $2,000, of which 20 percent is spent on food
    9·1 answer
  • Which of the following would cause a shift in the demand curve loading from point A to point B?
    7·1 answer
  • A narrow market focus is to a differentiation-based strategy as a __________________. technological innovation is to a cost-base
    13·1 answer
  • Calculate how much each of the following items is worth in terms of today's dollars using 180 as the price index for today.
    12·1 answer
  • What is the minimum completion cost of this project if there is a penalty of $1000 for each day the project lasts longer than 27
    10·1 answer
  • When you buy a U.S. government savings bond, you're doing so under the power given to Congress to
    10·1 answer
  • Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials
    13·1 answer
  • If you buy a ticket to an outdoor concert but come down with a bad cold on the night of the show, the principle of ____ suggests
    8·1 answer
  • EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $800 budgeted pric
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!