Q 12.11. A notebook computer costs $2,500; a desktop computer costs $1,500. If you buy either the
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Q 12.11. A notebook computer costs $2,500; a desktop computer costs $1,500. If you buy either the notebook or the desktop, you can increase your productivity to $9,000. If you buy both, you can increase your productivity to $11,000. (There is no time-value dimension to your choice.) Assume there is no computer resale market or alternative use for a computer. 1. If you do not own either, should you buy the notebook, the desktop, both, or neither? 2. If you own the notebook, should you buy the desktop? What are the marginal costs and benefits? 3. If you own the desktop, should you buy the notebook? What are the marginal costs and benefits?
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