Question

Suppose total benefits and total costs are given by B(Y) = 100Y − 8Y2 and C(Y) = 10Y2. Then marginal benefits are: 14) ______

A) 200Y − 10Y. B) 50 − 4Y. C) 100 − 16Y. D) 100Y − 8Y2.

Answer 1

C) 100 − 16Y

Step-by-step explanation:

The computation of the marginal benefit is shown below:

The marginal functions represent the derivatives with respect to the total functions as compared to Y.

so, the marginal benefit function is MB(Y)=dB(Y) ÷ dY

d (100Y - 8Y^2} ÷ dY

= 100 -16Y

Therfeore the option c is correct