Your firm’s research department has estimated your total revenues to be R ( Q ) = 30 , 000 Q − 80 Q 2 and your total costs to be C ( Q ) = 1 , XXXXXXXXXX Q 2 . (Note that the marginal functions are...

Your firm’s research department has estimated your total revenues to be
R(Q) = 30,
000Q −
80Q
²
and your total costs to be
C(Q) = 1,
000 + 20Q
². (Note that the marginal functions are MR(Q) = 30,
000
−
160Q
and MC(Q) = 40Q).

• What level of
  Q
  maximizes net benefits?


• What is the marginal benefit and marginal cost at this level of
  Q?


• What is the maximum level of net benefits?


• What is another word for net benefits in this example?