Missing Part of Question:
The related graph was not present with the original question, so I am attaching it here.
Explanation:
(a) In a free market, at a quantity exactly equal to , the value of a unit to a buyer is equal to the cost of a unit to a seller. For a quantity below , the value of unit to a buyer is greater than the cost of that product to the seller. Finally, for a quantity above , the value of that unit to the buyer is less than the cost incurred by the seller.
(b) The dumping of toxic chemicals is a typical scenario of Negative Externality which may lead to Market Failure due to poor display of supplier reputation.
Answer:
The answer is B. $45.00 per hour; $120.00 per hour
Explanation:
highminusoutput
Fixed costs 400000/16000= $25
variable costs 320000/16000= $20
Total <u>=$45</u>
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lowminusoutput
Fixed costs 400000/4000 = $100
variable costs 80000/4000 = $20
Total =<u>$120</u>