A paper plant produces water pollution during the production process. If the government forces the plant to internalize the nega
1 answer:
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Answer: (a) $197,500
(b) $ 189,500
Explanation:
Given : The marginal cost function :
To find the cost function, we need to integrate the above function with respect to x.
Now, the additional cost incurred in dollars when production is increased from 100 units to 150 units will be:-
Hence, the additional cost incurred in dollars when production is increased from 100 units to 150 units= $197,500
Similarly, the additional cost incurred in dollars when production is increased from 500 units to 550 units :-
Hence, the additional cost incurred in dollars when production is increased from 500 units to 550 units = $ 189,500
Answer:
A)
Goods A B C D E F
Candy Bars 0 4 8 12 16 20
Bags of Peanuts 10 8 6 4 2 0
B) graph
the slope of the line = 1.5 / -0.75 = -2
the opportunity cost of one more candy bar is 1 bag of peanuts (actually half a bag of peanuts, but you cannot purchase half of something).
the opportunity cost of one more bag of peanuts s 2 candy bars.
C) it doesn't tell me which combination to buy, it only tells me the possible combinations.
D) if I had won $30, the slope would have been the same, the total number of items purchased would have changed, increasing the available combinations.
