Complete the following table and answer the accompanying que

Complete the following table and answer the accompanying questions. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at tins level of the variable?

Solution

Make a Table

Control variable

Total Benefit

Total cost

Net Benefit

Marginal Benefit

Marginal cost

Marginal Ne benefit

100

1200

950

250

-

-

-

101

1400

1100

300

200

150

50

102

1590

1200

390

190

100

90

103

1770

1300

470

180

100

80

104

1940

1400

540

170

100

70

105

2100

1560

540

160

160

0

106

2250

1780

470

150

220

-70

107

2390

2000

390

140

220

-80

108

2520

2220

300

130

220

-90

109

2640

2640

00

120

400

-280

110

2750

2950

-200

110

310

-200

A)at what level of the control variable are net benefits maximized?

Where MB = MC ( Control Variable= 105)
(2) what is the relation between MB and MC at this level of the variable?

At this level of Variable (105) Both are Equal.

Control variable	Total Benefit	Total cost	Net Benefit	Marginal Benefit	Marginal cost	Marginal Ne benefit
100	1200	950	250	-	-	-
101	1400	1100	300	200	150	50
102	1590	1200	390	190	100	90
103	1770	1300	470	180	100	80
104	1940	1400	540	170	100	70
105	2100	1560	540	160	160	0
106	2250	1780	470	150	220	-70
107	2390	2000	390	140	220	-80
108	2520	2220	300	130	220	-90
109	2640	2640	00	120	400	-280
110	2750	2950	-200	110	310	-200