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Cost Benefit Analysis

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Cost Benefit Analysis

Given the following information:
UnitsQ Total Benefit B(Q) Total Cost C(Q) Net Benefits NB(Q) Marginal Benefits MB(Q) Marginal Cost MC(Q) MNB(Q)
100 1200 950 210 40
101 1400 50
102 1590 60
103 1770 70
104 1940 80
105 2100 90
106 2250 100
107 2390 110
108 2520 120
109 2640 130
110 2750 140

Complete the above table by filling in all the blank areas using the data given. Next, use Excel to provide a graph of Total Benefits and Costs and a graph of Marginal benefits and costs. Given the table, and the developed graphs, discuss your results.

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Solution Preview

Please refer attached file for better clarity of table and complete description. Graphs are missing here.

Solution:

UnitsQ Total Benefit B(Q) Total Cost C(Q) Net Benefits NB(Q) Marginal Benefits MB(Q) Marginal Cost MC(Q) MNB(Q)
100 1200 950 250 210 40 170
101 1400 1000 400 200 50 150
102 1590 1060 530 190 60 130
103 1770 ...

Solution Summary

Solution describes the formulas needed to calculate missing numbers. It also discusses the results of graphs.

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