Determine what is the maximum level of net benefit/ Econometrics
Assume the only choice variable is x. The total benefit function is B(x) =170x – x2 and the cost function is C(x) = 100 – 10x + 2×2
a) What are the marginal benefit and marginal cost functions?
b) Set up the net benefit functionand then determine the level of x that maximizes net benefit
c) What is the maximum level of net benefit?
