Homework Sourse1005 PM 100 eztomheducationcom My Academics CalCentral McG
10:05 PM @ 100%). + ezto.mheducation.com My Academics CalCentral McGraw-Hill Connect Connect | Section Home Homework 1 Econ 10OA: TTH 5:00pm Spring 2018 Konstantin ECONOMIcS Homework 1 instructions help | Question 6 (of 12) Save & Exit Submit 6 alue: 25.00 points Suppose that you can hire a mechanic to work for you for up to six hours. The total benefit of repair work is: B(H)-654H-40H2 The marginal benefit is: MMMH) =654-80H The marginal cost of repair work is: MC(H) 110 80H. The total cost of repair work is: C(H) = 110H + 40H2 1500, where you are already committed to paying the $1,500 for parts your mechanic has ordered a. What would your net benefit be? Choose from the options below A: 544H-80H2-1500 B: 544H-80Hz C: 544 H-80 Hz + 1500 D: 654 40H 1S00 Click to select) b. What would be your best choice? Instructions: Round your answer to 1 decimal place eBook & Resources 
Solution
a) Option A is correct
Net Benefit = Total Benefit - Total Cost
Net Benefit (NB) = 654H - 40H2 - 110H - 40H2 - 1500 = 544H - 80H2 - 1500
b)
Net Benefit would be maximized when d(NB)/dH = 0
544 - 160H = 0
H = 3.4 hours
