Question: 11. Suppose that random access memory (RAM) can be added to your computer at a cost of $100 per gigabyte. Suppose also that the value

 11. Suppose that random access memory (RAM) can be added to

11. Suppose that random access memory (RAM) can be added to your computer at a cost of $100 per gigabyte. Suppose also that the value to you, measured in terms of your willingness to pay, of an additional gigabyte of memory is $800 for the first gigabyte, and then falls by onehalf for each additional gigabyte. Draw a graph of marginal cost and marginal benefit. How many gigabytes of memory should you purchase

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