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Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

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.1.,<br />

OA<br />

The sign of — is only slightly more difficult to determine.<br />

aa<br />

2 2<br />

The sign of B 21 E B 12 -IZ + Q 2 Z<strong>Q2</strong>,A + Q ,A I may be either posi-<br />

tive or negative. The first two terms of this expression represent<br />

the marginal increment to profits which could be brought about by in-<br />

creasing the quality of service. The final term represents the mar-<br />

ginal cost of this prospective increase. (Assuming <strong>for</strong> the moment<br />

that IC a + Q 2 C<strong>Q2</strong>,aI is positive) if MR > MC, A will be increased;<br />

whereas if MR < MC, A will be decreased.<br />

78

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