Suppose you can hire your mechanic in quarter-hour increments. For repair work u

Question

Suppose you can hire your mechanic in quarter-hour increments. For repair work up to two hours, the total benefit (in dollars) is B(0) = 0, B(0.25) = 30, B(0.5) = 60, B(0.75) = 90, B(1) = 120, B(1.25) = 140, B(1.5) = 160, B(1.75) = 180, B(2) = 200. What is the marginal benefit of repair time (measured on a per-hour basis) at each of these possible choices?

Suppose you can hire your mechanic in quarter-hour increments. For repair work up to two hours, the total benefit (in dollars) is B(0) 0, B(0.25) 30, B(05) 60, B(0.75) 90, B(1) 120, B(1.25) = 140, B(1.5) = 160, B(1.75) 180, B(2) = 200. What is the marginal benefit of repair time (measured on a per-hour basis) at each of these possible choices?

Explanation / Answer

Marginal Benefit for first quater = 30

MB for second quarter = 60 - 30 = 30

MB for third quarter = 90 - 60 = 30

MB for fourth quarter = 120 -90 = 30

MB for fifth quarter = 140 -120 = 20

MB for sixth quarter = 160 -140 = 20

MB for seventh quarter = 180 - 160 = 20

MB for eigth quarter = 200 - 180 = 20

Thus, MB until first hour is 30, while MB after first hour till the second hour is 20.

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