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Suppose you're the CEO of Pigh-am-Tech, and suppose you're trying to decide whether to invest 1 million dollars in machines or not. Suppose that
Suppose you're the CEO of Pigh-am-Tech, and suppose you're trying to decide whether to invest 1 million dollars in machines or not. Suppose that when you spend the 1 million dollars, you will obtain 500 machines and that number is in- creasing by 1.1 machines per dollar spent. Moreover, suppose that the marginal profit of having 500 machines is 0.9 dollars per machine. Should you or should you not make that investment?
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To determine whether to invest 1 million in machines for PighamTech lets analyze the marginal profit ...
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