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Martinez, Althea E. BSAIS 1-A (Activity # 2 Marginal Analysis)

The document is a problem solving activity that examines a table with data on total benefits, total costs, net benefits, marginal benefits, marginal costs, and marginal net benefits at different levels of Q. The student is asked questions about the net benefits and marginal net benefits at different Q levels. They determine that net benefits are maximized at Q=5 and Q=6, which is 220. At these levels, the marginal net benefit is 10 and 0.
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0% found this document useful (0 votes)
55 views2 pages

Martinez, Althea E. BSAIS 1-A (Activity # 2 Marginal Analysis)

The document is a problem solving activity that examines a table with data on total benefits, total costs, net benefits, marginal benefits, marginal costs, and marginal net benefits at different levels of Q. The student is asked questions about the net benefits and marginal net benefits at different Q levels. They determine that net benefits are maximized at Q=5 and Q=6, which is 220. At these levels, the marginal net benefit is 10 and 0.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: Althea E.

Martinez Score: ______________


Course/Yr./Sec.: BSAIS 1-A Date: September 16, 2021

Task/Activity 3: Problem Solving

Examine and complete the table below:

Q Total Total Net Marginal Marginal Marginal


Benefits Costs (Q) Benefits Benefit Cost Net
(Q) (Q) MB (Q) MC(Q) Benefit
MNB(Q)
0 0 0 0 - - -
1 90 10 80 90 10 80
2 175 30 145 85 20 65
3 240 50 190 65 20 45
4 295 85 210 85 35 20
5 350 130 220 55 45 10
6 400 180 220 50 50 0
7 420 215 205 20 35 -15
8 440 270 170 20 55 -35
9 450 350 100 10 80 -70
10 455 460 -5 5 110 -105

After examination and completion of the table, answers the following questions:

1. What are the net benefits when Q = 1? 80 ; Q = 4? 210; Q = 8? 170


2. What are the marginal net benefits when Q = 2? 65; Q = 5? 10; Q = 8? -35
3. What level of Q maximizes net benefits? It will be Level 5 and Level 6 which is 220.
4. At the value of Q that maximizes net benefits, what is the value of marginal net
benefits? The value of the Marginal Net Benefits is 10 and 0.

RUBRICS: For Problem Set/ Proving Quiz:

Score Content Rating

Excellent Content is rich, simple and clear. Content


leads viewers to new discovery. There is an
90-100
opportunity for discovery for the viewer.

Very Good Content is complete and Includes relevant


detail.
80-89
Good There is adequate detail. Some extraneous
information and minor gaps are included.
70-79
Below There is insufficient detail, or detail is
irrelevant and extraneous.
Expectations
65-69

Solution:
Formula to get the Net Benefits
NB = Total Benefits – Total Cost
NB = TB – TC
1. NB = 90 – 10 6. NB = TB – TC
NB = 80 NB = 400 – 180
NB = 220
2. NB = TB – TC
NB = 175 – 30 7. NB = TB – TC
NB = 145 NB = 420 – 215
NB = 205
3. NB = TB – TC
NB = 240 – 50 8. NB = TB –TC
NB = 190 NB = 440 – 270
NB = 170
4. NB = TB – TC
NB = 295 – 85 9. NB = TB – TC
NB = 210 NB = 450 – 350
NB = 100
5. NB = TB – TC
NB = 350 – 130 10. NB = TB – TC
NB = 220 NB = 455 – 460
NB = -5

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