# Cost Analysis

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

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