| Control Variable Q |
Total Beneifts B(Q) |
Total Cost C(Q) |
Net Benefits N(Q) |
Marginal Benefits N(Q) |
Marginal Cost MC(Q) |
Marginal Net Benefit MNB(Q) |
| 100 |
1200 |
1000 |
|
210 |
90 |
|
| 101 |
1400 |
|
|
|
100 |
|
| 102 |
1590 |
|
|
|
110 |
|
| 103 |
1770 |
|
|
|
120 |
|
| 104 |
1940 |
|
|
|
130 |
|
| 105 |
2100 |
|
|
|
140 |
|
| 106 |
2250 |
|
|
|
150 |
|
| 107 |
2390 |
|
|
|
160 |
|
| 108 |
2520 |
|
|
|
170 |
|
| 109 |
2640 |
|
|
|
180 |
|
| 110 |
2750 |
|
|
|
190 |
|
Question 1: At what level of the control variable are net benefits maximized?
Question 2: What is the relation between marginal benefit and marginal cost at this level of the control variable?