Suppose Total Benefits and Total Costs Are Given by B(Y)=

question 113

Multiple Choice

Suppose total benefits and total costs are given by B(Y) = 150Y − 10Y² and C(Y) = 5Y².Then marginal costs are:

• A) 2.5Y.
• B) 25Y.
• C) 5Y.
• D) 10Y.

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Definitions:

Direct Materials Cost

The expense incurred for raw materials that are consumed directly in the manufacturing process of a product.

Automobile Manufacturer

A company that produces motor vehicles, including cars, trucks, and buses, for sale on a large scale.

Oil Lubricants

Substances used to reduce friction, heat, and wear between mechanical components that are in contact with each other.

Factory Overhead Cost

Represents indirect manufacturing costs not directly attributable to specific units or batches of production, such as maintenance and utilities.