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The information technology shop of Globus Enterprises is planning a project to upgrade their data center.
As part of the project, the engineering team is trying to determine the number of new servers required to optimize productivity for their web site.
The result of their analysis is shown in the following table:
# of Servers
Total Cost
Total Benefits
1
5
30
2
10
55
3
17
75
4
25
90
34
103
6
44
113
7
58
121
8
73
126
9
130
110
132
Draw the graph showing marginal cost and benefits for different numbers of servers deployed.
If Globus's goal is to optimize productivity, how many servers should they deploy as part of this project? Explain your rationale.
What is the economic production quantity? How many production runs per year will be made?
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