Marginal Analysis

B(Q)

C(Q)

N(Q)

MB(Q)

MC(Q)

MNB(Q)

--

--

--

200

30

170

200

30

170

300

70

230

100

40

60

390

120

270

90

50

40

450

180

270

60

60

480

255

225

30

75

-45

500

330

170

20

75

-55

Marginal Analysis
600
500
400

Price

1. Net Benefit line is at peak GRAPH

2. Net Benefit is athe highest number CHART
3. MB and MC intersect GRAPH
4. MB=MC on chart or are as close as possible CHART
5. MNB crosses the x axis (Price = $0) GRAPH
6. MNB= 0 CHART
7. Distance between TC and TB is greatest vertically

300
200
100
0
-100

Quantity
Total Benefit

Total Cost

Net Benefit

Marginal Benefit

Marginal Cost

Marginal Net Benefit