Question

2. Leonard and Sheldon are trying to decide how many days they want to go to ComicCon. There are 10 total days, each requiring a specific ticket be purchased. After much deliberation, Leonard and Sheldon quantity the benefits and costs of attending: Total Benefits = 200 D - 10D2 Total Costs = 10D2 these functions are used to compute Marginal Benefits and Marginal Costs: Marginal Benefit = 200 – 20D Marginal Cost = 20D i. Using the First Equimarginal Principle, find the most efficient number of days to attend ComicCon. ii. Compute the Net Benefits for each ComicCon duration, to confirm the result found in part i.

Answer 1

Asper the first Equi- Marginal Principle,the most efficient number of days are ,where-----

Marginal cost (MC)= Marginal benefits(MB)

So, equating both ,we get-----:

200-20D = 20 D

40D = 200

D= 5

So ,the most efficient days are 5

2) Net benefits for each comic cone duration are shown in table below-----

Days	TB(200D-10D²)	TC(10D²)	Net benefit
1	190	10	180
2	360	40	320
3	510	90	420
4	640	160	480
5	750	250	500(maximum)
6	840	360	480
7	910	490	420
8	960	640	320
9	990	810	180
10	1000	1000	0

So, it is confirmed that maximum net benefit occurs when 5 days are taken