A not-for-profit entity has $70 to spend on two different projects, project 1 and project 2. The benefits derived from the projects at different levels of expenditures are shown in the table below. Assign the money among these two projects to maximize total social benefit. If the budget increases to $100, discuss how you would allocate the money among these two projects?
|
Expenditure on project 1 ($)
|
Benefit obtained, project 1 ($)
|
Expenditure on project 2 ($)
|
Benefit obtained, project 2 ($)
|
|
10
|
600
|
10
|
200
|
|
20
|
1000
|
20
|
370
|
|
30
|
1200
|
30
|
520
|
|
40
|
1350
|
40
|
660
|
|
50
|
1450
|
50
|
790
|
|
60
|
1500
|
60
|
910
|
|
70
|
1550
|
70
|
1000
|