This business problem for microeconomic students might be used as part of a problem set or as a take-home exam. It highlights the importance of marginal analysis and the implications of the fact that rational individuals will undertake the most cost-effective measures first. Copyright 1997 by...

This business problem for microeconomic students might be used as part of a problem set or as a take-home exam. It highlights the importance of marginal analysis, and the implications of the fact that rational individuals will undertake the most cost-effective measures first