1. The marginal cost of an increasing building height of a commercial office building is represented by: MC=5+0.5H, where cost is measured in millions of dollars and H refers to building height in stories (about 14 feet). The marginal revenue for the building is represented by MR = 11-0.3H. What building height will maximize profit? What is the marginal cost of the: • highest story? • second highest story?

1. The marginal cost of an increasing building height of a commercial office building is represented by: MC=5+0.5H, where cost is measured in millions of dollars and H refers to building height in stories (about 14 feet). The marginal revenue for the building is represented by MR = 11-0.3H. What building height will maximize profit? What is the marginal cost of the: • highest story? • second highest story?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 1.3P

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