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1. Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H) = 654H - 40H2 and C(H) = 110H + 120H2. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 654 - 80H and MC(H) = 110 + 240H. What is your best choice? (LO4)
2. Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are and C(H) = 100H. The corresponding formulas for marginal benefit and marginal cost are and MC(H) = 100. What is your best choice? (LO4)
3. What would be the best choice in worked-out problem 3.1 (page 82) after you have made an appointment that committed you to a $1500 non-refundable fee? What would your net benefit be? (LO4, 5)
An engineering student requires to replace the battery in her car so that she can drive home for a vacation after Spring Semester. She has located following possibilities:
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