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Your firm's research department has estimated your total revenues to be R(Q)= 3,000 - 8Q2 and your total costs to be C(Q)= 100 + 2Q2.(Note that MB = 3,000 - 16Q and MC = 4Q.) a.What level of Q maximizes net benefits? b.What is marginal benefit at this level of Q? c.What is marginal cost at this level of Q? d.What is the maximum level of net benefits? e.What is another word for net benefits in this example?

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a.Setting MNB(Q)= 3000 − 20Q = 0 and sol...

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What is the marginal revenue of producing the fortieth unit?  No. Units Produced  Total Revenue Total Costs 000101204020200100302701704031026050330370\begin{array} { c c c } \text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs } \\ 0 & 0 & 0 \\ 10 & 120 & 40 \\ 20 & 200 & 100 \\ 30 & 270 & 170 \\ 40 & 310 & 260 \\ 50 & 330 & 370 \\\end{array}


A) 4
B) 80
C) 7.75
D) 40

E) A) and D)
F) B) and D)

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What is the main role of economic profits?


A) To signal where resources are most highly valued
B) To help firms cover their production costs
C) To help consumers cover their opportunity cost
D) None of the statements associated with this question are correct.

E) C) and D)
F) B) and D)

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When MB = 300 − 12Y and TC = 12Y + 108,the optimal level of Y is:


A) 25.
B) 4.5.
C) 8.
D) 24.

E) A) and B)
F) All of the above

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The higher the interest rate,the greater the:


A) present value.
B) net present value.
C) Both A and B are correct.
D) Neither A nor B is correct.

E) B) and D)
F) B) and C)

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