Suppose that you can schedule a worker for up to 10 hours per day.The total benefit and total cost functions are B(H)= 1200/ÖH and C(H)= 200H.The corresponding formulas for marginal benefit and marginal cost are MB(H)= 600/ÖH and MC(H)= 200.How many hours should you schedule the worker?
A) 9 Hours
B) 8 Hours
C) 4 Hours
D) 0 Hours

Question

Quizplus · Accepted Answer

The correct answer is A because the marginal benefit is greater than the marginal cost at 9 hours, but not at 10 hours.

Suppose That You Can Schedule a Worker for Up to 10