Answer:
So 10 wind crimes has an opportunity cost 15 bird houses
or 1.5 per unit.
Explanation:
The opportunity cost is the cost of the goods it could been produced instead of the current output.
For the 10 wind chimes it will be the decreases in the birdhours production.
When Horatio moves to 25 from 15 wind chimes his bird house production fall to 15 from 30 Therefore, it decreases by 15
So 10 wind crimes has an opportunity cost 15 bird houses
we can do this metric by unit:
15/10 = 1.5 each additional wind chimes cost 1.5 bird house.
Answer:
the private cost of the 10,000th gallon is $2.25
Explanation:
The computation of the private cost is shown below:
Private marginal cost is
= Social marginal cost - External cost
= $3.5 - $1.25
= $2.25
hence, the private cost of the 10,000th gallon is $2.25
We simply applied the above formula so that the correct value could come
And, the same is to be considered
