A decision maker is choosing the levels of two activities, A and B, maximize total benefits under a given budget. The prices and marg benefits of the last units of A and B are denoted P4, PB, MB4, and a. If PA = $20, Pg = $15, MB4 = 400, and MBB = 600, what should decision maker do? b. If PA = $20, Pg = $30, MB4 = 200, and MBB = 300, what shoula

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
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If PA = $20, PB = $40, MB= 300, and MBB = 400, how much will benefits increase if this exchange is made? 

10. A decision maker is choosing the levels of two activities, A and B, so as to
maximize total benefits under a given budget. The prices and marginal
benefits of the last units of A and B are denoted P4, PB, MBA, and MBB-
a. If PA = $20, PB = $15, MBA = 400, and MBB = 600, what should the
decision maker do?
b. If P = $20, PR = $30, MB4 = 200, and MBB = 300, what should the
A
decision maker do?
c. If PA = $20, PB = $40, MBA = 300, and MBB = 400, how many units of A
can be obtained if B is reduced by one unit? How much will benefits
increase if this exchange is made?
d. If the substitution in part c continues to equilibrium and MBĄ falls to
250, what will MBB be?
Transcribed Image Text:10. A decision maker is choosing the levels of two activities, A and B, so as to maximize total benefits under a given budget. The prices and marginal benefits of the last units of A and B are denoted P4, PB, MBA, and MBB- a. If PA = $20, PB = $15, MBA = 400, and MBB = 600, what should the decision maker do? b. If P = $20, PR = $30, MB4 = 200, and MBB = 300, what should the A decision maker do? c. If PA = $20, PB = $40, MBA = 300, and MBB = 400, how many units of A can be obtained if B is reduced by one unit? How much will benefits increase if this exchange is made? d. If the substitution in part c continues to equilibrium and MBĄ falls to 250, what will MBB be?
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