Control Variable (S) Total Benefits B(S) Total Costs C(S) Net Benefits N(S)

0 0 0 0
200 760,000 40,000 720,000
400 1,440,000 160,000 1,280,000
600 2,040,000 360,000 1,680,000
800 2,560,000 640,000 1,920,000
1,000 300,000 1,000,000 - 700,000
1,200 3,600,000 1,440,000 2,160,000
1,400 3,640,000 1,960,000 1,680,000
1,600 3,840,000 2,560,000 1,280,000
1,800 3,960,000 3,240,000 720,000
2,000 4,000,000 4,000,000 -

TB - TC Approach
4500000

4000000

3500000

3000000
Total Benefits B(S)
2500000
Total Costs C(S)
2000000

1500000

1000000

500000

0
0 500 1000 1500 2000 2500

NET BENEFIT
250

200

150

100
Net Benefit N(S)
50

0
0 500

-50

-100...
 100
Net Benefit N(S)
50

0
0 500

-50

-100...

MB, MC, & MNB

400

300

200
Marginal Benefit
MB(S)
100 Marginal Cost MC(S)
Marginal Net Benefits
0 MNB(S)
0 500

-100...

-200...

-300...
 Marginal Benefit MB(S) Marginal Cost MC(S) Marginal Net Benefits MNB(S)
- - -
760,000 40,000 720,000
680,000 120,000 560,000
600,000 200,000 400,000
520,000 280,000 240,000
- 2,260,000 360,000 - 2,620,000
3,300,000 440,000 2,860,000
40,000 520,000 - 480,000
200,000 600,000 - 400,000
120,000 680,000 - 560,000
40,000 760,000 - 720,000

Total Benefits B(S)

Total Costs C(S)

0 2500

Net Benefit N(S)

 Net Benefit N(S)

Marginal Benefit
MB(S)
Marginal Cost MC(S)
Marginal Net Benefits
MNB(S)