AMS Recently Instituted an In-House Recycling Program

question 3

Essay

AMS recently instituted an in-house recycling program.The benefits of this program include not only the benefits to the environment of recycling but also the goodwill generated by AMS's leadership in this area.The costs of recycling include all of the energy,labor,and space required to do the recycling.Suppose these benefits and costs are given by B(Q)= 100Q - 2Q² and C(Q)= 2Q.(Note that MB = 100 - 4Q,and MC = 2.)
a.What level of Q maximizes the total benefits of recycling?
b.What level of Q minimizes the total costs of recycling?
c.What level of Q maximizes the net benefits of recycling?
d.What level of recycling is optimal?
Why?

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Definitions:

Total Assets

The sum of all assets, both current and noncurrent, owned by a company, representing the resources it has at its disposal.

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities. Also known as shareholder's equity or owner's equity.

Redemption Value

Redemption value is the amount payable to a security holder upon its maturity or the amount to redeem a bond before its maturity.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be issued on common stock.