Microeconomics 2nd Edition by Douglas Bernheim

Exercise 2

Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for H hours and spend A dollars advertising, your benefit (the amount you receive when you sell your car) is B ( H , A ) = 220 H - H 2 + 2 A. Both H and A are finely divisible. What is your marginal benefit of repair hours when H = 4 and A = 100 What is your marginal benefit of advertising dollars at that choice