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Suppose That You Can Schedule a Worker Up to Four

Question 63

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Suppose that you can schedule a worker up to four hours per day.The benefit function is given by B(H)= 500H - 22.5H2 and the cost function is given by C(H)= 100 + 15H2.The corresponding marginal benefit and marginal cost functions are given by MB(H)= 500 - 45H and MC(H)= 100 + 30H.What is the best choice of hours for this worker?

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Setting MC = MB gives 500 - 45H = 100 + ...

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