Economics Homework Help
Economics Homework Help. 1. Draw the graph showing marginal cost and benefits for different numbers of se
The
information technology shop of Globus Enterprises is planning a project to
upgrade their data center. As part of the project, the engineering team is
trying to determine the number of new servers required to optimize productivity
for their web site. The result of their analysis is shown in the following
table:
# of Servers |
Total Cost | Total Benefits |
1 | 5 | 30 |
2 | 10 | 55 |
3 | 17 | 75 |
4 | 25 | 90 |
5 | 34 | 103 |
6 | 44 | 113 |
7 | 58 | 121 |
8 | 73 | 126 |
9 | 90 | 130 |
10 | 110 | 132 |
1.
Draw the graph showing marginal cost and benefits for different numbers of
servers deployed.
2. If Globus’s goal is to
optimize productivity, how many servers should they deploy as part of this
project? Explain your rationale.