Your firm's research department has estimated your total revenues to be
TR= 5,000*Q – 10*Q2 and your total costs to be TC = 500 + 2.5*Q2. (Note that
MB = 5,000 – 20*Q and MC = 5*Q.)
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 (profits)?
