John Paul Macalling

BEMPC 1680

Control Marginal Benefit Marginal Net

Total Benefits B(S) Total Cost C(S) Net Benefits N(S) Marginal Cost MC(S)
Variable (S) MB(S) Benefits MN(S)
0 0 0 0 - - -
1 200 10 190 200 10 190
2 380 30 350 180 20 160
3 540 60 480 160 30 130
4 680 100 580 140 40 100
5 800 150 650 120 50 70
6 900 210 690 100 60 40
7 980 280 700 80 70 10
8 1040 360 680 60 80 -20
9 1080 450 630 40 90 -50
10 1100 550 550 20 100 -80
 MB, MC and MNB
200

150

100

50

Marginal Net Benefits MN(S) -

0
1 Marginal Cost MC(S) -
2
3
4
5
6 Marginal Benefit MB(S) -
7
-50 8
9
10

-100

Marginal Benefit MB(S) - Marginal Cost MC(S) - Marginal Net Benefits MN(S) -
 Marginal Benefit MB(S) - Marginal Cost MC(S) - Marginal Net Benefits MN(S) -

Net Benefi ts

700

600

500

400

300

200

100

0
1
2
3
4
5
6
7
8
9
10

Net Benefits N(S) 0

 3
4
5
6
7
8
9
10

Net Benefits N(S) 0

TB-TC Approach

1200

1000
1080 1100
1040
980
800 900

800

600 680

540
550
400
450
380
360
280
200 200 210
150
10 60 100
30

0
1 Total Cost C(S) 0
2
3
4
5
6 Total Benefits B(S) 0
7
8
9
10

Total Benefits B(S) 0 Total Cost C(S) 0

0
1 Total Cost C(S) 0
2
3
4
5
6 Total Benefits B(S) 0
7
8
9
10

Total Benefits B(S) 0 Total Cost C(S) 0