Strategic Microeconomics (MBA 773) Homework 2 Instructions: Answer all the questions in the space provided and bring a hard copy to class on Monday, March 16\"\". You may work on the problems with other class members, but please write up your own answers. Sharing a single set of answers among group members is not allowed. You may only consult materials from this class (textbook, notes, slides, etc.). Show your work where possible. 1. (35 points) Each summer Chapel Hill Financial Advisors has to decide how many summer interns to hire to assist in writing a series of market reports. They know from previous experience that the productivity of their office over the summer can be summed up in the table below assuming the other aspects of their business are stable. (Assume it will be the case that everything else about their business will remain the same during the summer.) The market reports generated during the summer each bring in an additional $1,500 in revenue on average. Number of Total Reports Marginal Product of Value of the Student Interns Produced Student Interns Mar_ -inal Product a. (5 points) Complete the 3'd and 4th columns in the table above. b. (15 points) If the firm is able to hire interns for $8,500 each for the summer, how many interns should be hired? Explain. Interns Hired