Exercise 3. Your software company recently instituted a highly regarded training programfor newly hired software developers. The benefits of this program include not only thebenefits to employees, but also the goodwill generated by an increase in your reputationamong customers and professional groups. The costs of this training program include allof the labor, space, and consultants necessary. Suppose these benefits and costs are givenby B(Q) = 100Q2Q² and C(Q) = 100, where Q represents the amount of hours eachsoftware developer should spend in training. (Note that MB = 100 – 4Q, MC = 10, andalso that time can be measured in fractions of one hour.)a. What level of Q maximizes the total benefits of your newly introduced training pro-gram?b. What level of Q minimizes the total costs of the program?c. What level of Q maximizes the net benefits?d. What level of training is optimal? Why?

*Answer: . Given, Total benefit: B (Q) = 100Q -2Q^2 Total cost: C (Q) = 10Q Marginal benefit = dB…

ware developers. The benefits of this program 5, but also the goodwill generated by an increa d professional groups. The costs of this trainin and consultants necessary. Suppose these benefit 20² and C(Q) 10Q, where Q represents the ould spend in training. (Note that MB = 100 measured in fractions of one hour.) Q maximizes the total benefits of your newly int minimizes the total costs of the program? maximizes the net benefits? caining is optimal? Why?

ware developers. The benefits of this program 5, but also the goodwill generated by an increa d professional groups. The costs of this trainin and consultants necessary. Suppose these benefit 20² and C(Q) 10Q, where Q represents the ould spend in training. (Note that MB = 100 measured in fractions of one hour.) Q maximizes the total benefits of your newly int minimizes the total costs of the program? maximizes the net benefits? caining is optimal? Why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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