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Suppose you have t = 5 hours in total to spend on some projects to make some money. The table below shows how many dollars you can make (Total Revenue) in each of the three projects I, II, III if you spend the corresponding number of hours on that project: How would you allocate your time across the projects? What is the maximum total money you could make?

Suppose you have t = 5 hours in total to spend on some projects to make some money. The table below shows how many dollars you can make (Total Revenue) in each of the three projects I, II, III if you spend the corresponding number of hours on that project: How would you allocate your time across the projects? What is the maximum total money you could make?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose you have t = 5 hours in total to spend on some projects to make some money. The table below shows how many dollars you can make (Total Revenue) in each of the three projects I, II, III if you spend the corresponding number of hours on that project:

How would you allocate your time across the projects?
What is the maximum total money you could make?

 

PROBLEM (1) Suppose you have t = 5 hours in total to spend on some projects to make some money. The table below shows how many dollars you can make (Total Revenue) in each of the three projects I, II, III if you spend the corresponding number of hours on that project: MR1 Time allocated 0 1 2 3 4 5 Project I TR $0 $10 $16 $20 $20 $20 Project II TR $0 $7 $12 $15 $16 $16 MR2 Project III TR $0 $9 $17 $23 $25 $25 MR3 How would you allocate your time across the projects? What is the maximum total money you could make? HINT: You can use the empty columns to write down the marginal revenues for each project and figure out the optimal allocation.
Transcribed Image Text:PROBLEM (1) Suppose you have t = 5 hours in total to spend on some projects to make some money. The table below shows how many dollars you can make (Total Revenue) in each of the three projects I, II, III if you spend the corresponding number of hours on that project: MR1 Time allocated 0 1 2 3 4 5 Project I TR $0 $10 $16 $20 $20 $20 Project II TR $0 $7 $12 $15 $16 $16 MR2 Project III TR $0 $9 $17 $23 $25 $25 MR3 How would you allocate your time across the projects? What is the maximum total money you could make? HINT: You can use the empty columns to write down the marginal revenues for each project and figure out the optimal allocation.
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