As an IT manager, you must decide how to allocate programmers between "support"-that is, doing bug fixes and responding to production issues and the development of new features and systems. Both tasks are measured in completed "tickets," and for each activity, the weekly average product, total product, and marginal product are given in the accompanying table. Ticket completions of both types are equally valued by your company. Your programmers work in teams of 10. Currently you allocate two teams (20 programmers) to support and three teams (30 programmers) to development. How should you reallocate your teams, if at all, to achieve the maximum number of competed tickets per week? Number of teams 0 1 2 3 4 5 Development: Support: AP 0 42 42 42 42 42 Support TP ✪ team(s) team(s) 0 42 84 126 168 210 MP 42 42 42 42 42 AP 0 70 65 60 55 50 Development TP 0 70 130 180 220 250 MP 70 60 50 40 30

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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The answer is not Development 4 and Support 1 either. 

As an IT manager, you must decide how to allocate programmers between "support"-that is, doing bug fixes and responding to
production issues and the development of new features and systems. Both tasks are measured in completed "tickets," and for each
activity, the weekly average product, total product, and marginal product are given in the accompanying table. Ticket completions of
both types are equally valued by your company. Your programmers work in teams of 10. Currently you allocate two teams (20
programmers) to support and three teams (30 programmers) to development.
How should you reallocate your teams, if at all, to achieve the maximum number of competed tickets per week?
Number of
teams
0
1
2
3
4
5
Development:
Support:
AP
Ø
42
42
42
42
42
Support
TP
✪ team(s)
4 * team(s)
Ø
42
84
126
168
210
MP
42
42
42
42
42
AP
Ø
70
65
60
55
50
Development
TP
70
130
180
220
250
MP
70
60
50
40
30
Transcribed Image Text:As an IT manager, you must decide how to allocate programmers between "support"-that is, doing bug fixes and responding to production issues and the development of new features and systems. Both tasks are measured in completed "tickets," and for each activity, the weekly average product, total product, and marginal product are given in the accompanying table. Ticket completions of both types are equally valued by your company. Your programmers work in teams of 10. Currently you allocate two teams (20 programmers) to support and three teams (30 programmers) to development. How should you reallocate your teams, if at all, to achieve the maximum number of competed tickets per week? Number of teams 0 1 2 3 4 5 Development: Support: AP Ø 42 42 42 42 42 Support TP ✪ team(s) 4 * team(s) Ø 42 84 126 168 210 MP 42 42 42 42 42 AP Ø 70 65 60 55 50 Development TP 70 130 180 220 250 MP 70 60 50 40 30
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