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Cost Analysis

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For the cost function C(Q) = 2000 + 15Q + 5Q2 + 4Q3, what is the marginal cost of producing the fifth unit of output?

A) $2,000.
B) $256.
C) $340.
D) $365.

Suppose total benefits and total costs are given by B(Y) = 50Y - 4Y2 and C(Y) = 6Y2. What level of Y will yield the maximum net benefits?

A) 2.5
B) 5.0
C) 50/18
D) 50/8

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https://brainmass.com/economics/cost-benefit-analysis/cost-analysis-managerial-economics-372324

Solution Preview

1. For the cost function C(Q) = 2000 + 15Q + 5Q2 + 4Q3, what is the marginal cost of producing the fifth unit of output? ...

Solution Summary

There are two problems. Solution to first problem describes the steps to calculate marginal cost of producing a given unit of output. Solution to second problem calculates value Y that maximizes the net benefits.

$2.19