No. of hours Total Costs $13 $30 $51 A $76 5 $105 6 $138 7 $175 $216 8 $261 Table 3: Total benefit as a function of hours spent studying. 3) You go through a lot of socks a month. You notice an advertisement for a sock club from your favorite sock company. You pay a monthly membership fee SM and then you can buy any number of socks you want for $5 each. Your marginal benefit in dollars, as function of Q (i.e. pairs of socks in a given month) is MB(Q) = 20 - 5Q. 3a) You are offered a discounted rate and the monthly fee is $15 (i.e. M=15), do you purchase a membership? If so, how many pairs of socks do you optimally purchase? (Hint: First, assume you are a member, and then figure out the quantity you would buy. The total benefit of a membership is the sum of net benefits from all the pairs of socks you buy. You would only buy the membership if the benefit is at least as large as the cost 3b) Next month, the discount no longer applies and the month rate is $25, do you buy the membership? 3c) Unfortunately, you did not read the fine print when you signed up and you have to pay for an additional month before you can cancel the membership. How many pairs of socks do you buy the second month? 3d) After a quick call to customer service, they allow you to cancel your membership in the second month but they only refund you $20 of the $25 you paid as membership fee (they say it is for processing charges). Do you accept their offer and cancel your membership for the second month? 3e) Suppose you did not cancel and have a membership for the second month. Your friend looking at your shopping cart and encourages you to buy more than 3 pairs. Should you listen to them