The marginal net benefits of production are given by marginal
willingness to pay minus the marginal costs of production (this is
the net benefit from producing one additional unit). The area under
the marginal net benefit curve is the sum of producer and consumer
surplus. The marginal net benefits are given by MNB = MWTP – MC =
15 – 3Q.
3a. Which quantity maximizes the total (not marginal) net
benefits of production?
3b. What are the maximum total net benefits?
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