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Unformatted text preview: you undertake an activity x. Total benefit from x can be expressed by the equation: The total cost of x can be expressed by the equation: What is the level of x that will maximize your net benefit (that is, total benefit minus total cost)?
Instructions: Round your answer to 2 decimal places.
The level of x that will maximize your net benefit is 6.25 ± .01 . Explanation:
Marginal benefit of x is: Marginal cost of x is: Solve MB = MC to get x = 6.25. e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 2/7 1/14/14 7. Assignme nt Pr int Vie w awar d: 5 out of
Suppose that the cost of hiring your mechanic (including the cost of parts) is $200 an hour up to four hours and
$300 an hour over four hours (she charges for her time in onehour increments). Your benefits and other costs
are shown below. Fill in the blanks in the table below.
Instructions: Round your answers to the nearest whole number. Hours
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This note was uploaded on 01/14/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.
- Fall '13