Shirley has to choose between a 2-day trip and a 3-day trip to Hollywood.The table below shows the expected benefit and cost for the different days.Apply both optimization using total value and optimization using marginal analysis to determine what Shirley's optimum decision should be.Does the decision differ with the techniques used? Which technique is faster to implement?
Definitions:
Demand Curve
A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices, typically downward sloping.
Total Revenue
The total income a firm receives from the sale of its products, calculated by multiplying price by quantity sold.
Price Falls
A situation where the market price of a good or service decreases due to factors such as increased supply or decreased demand.
Midpoint Formula
A method used in economics to calculate the elasticity of demand or supply by taking the average of the starting and ending prices and quantities.
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