Based on the information given, the marginal cost of the price that should be paid is $250 per hour.
This is an incomplete information. From the complete information, the number of moving crew will be gotten where the marginal cost is equal to the marginal benefit and this will be at the 4th hour. Therefore, the <em>marginal cost</em> and benefit equal $250.
Therefore, one should hire movers for 4 hours. Therefore, based on the information given, the consumer surplus will be:
= $600 + $370 + $250
= $1220
In conclusion, the total consumer surplus for hiring a crew for<u> 4 hours</u> will be<u> $1220.</u>
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First, we need to find the probability, P, that the software is the standard version.
Out of 25,000 units, 5,000 were deluxe. That means the remaining 20,000 were standard. So, 20,000 out of 25,000, or

were standard. That means the probability of selecting a standard one at random is P = 0.8.
Next, we need to find the independent probability that any software box will contain the promotion. We know that 1 in 500 will, or

. That means P = 0.002.
To find the compound probability of these two events, we multiply the probabilities together to get

.
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