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Suppose you have the following TB and TC functions where X is the choice variable: TB = 600X - 3X2 and TC = 400X+2X2 a.
Suppose you have the following TB and TC functions where X is the choice variable: TB = 600X - 3X2 and TC = 400X+2X2 a. Find the optimal X that maximizes NB. b. Graph your MB and MC curves on the same set of axes. Label both your axes appropriately. Label the optimal value (numerical value) of X that maximizes NB. Label the numerical values of the vertical axis intercepts for TB and TC. c. Now suppose that TB remains unchanged but TC = 460X +2X2 d. Find the new value of X that optimizes NB. e. Re-draw your graph including both the original MB and MC curves and original optimal X adding the new MC curve, and the new optimal value of X. What happened to MC (is this an increase or decrease in MC)? f. In the speeding article we covered in class, what would cause the type of shift of the MC curve you have in part e
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