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 × √H and C(H)= 200H.The corresponding formulas for marginal benefit and marginal cost are MB(H)= 600/√H 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 marginal benefit is greater than the marginal cost when H is less than 9, so the worker should be scheduled for 9 hours.

Suppose That You Can Schedule a Worker for Up to 10