Building boats = On a tropical island there are 100 potential boat builders, numbered 1 through 100. Each can build up to 8 boats a year, but anyone who goes into the boat-building business has to pay a fixed cost of $7. Marginal costs differ from person to person. Where y denotes the number of boats built per year, boat builder 1 has a total cost function c(y) 7 y. Boat builder 2 has a total cost function c(y) = 7+2y, and more generally, for each i, from 1 to 100, boat builder i has a cost function c(y): = 7+ iy. If the price of boats is 15, how many boats will be built per year?
Building boats = On a tropical island there are 100 potential boat builders, numbered 1 through 100. Each can build up to 8 boats a year, but anyone who goes into the boat-building business has to pay a fixed cost of $7. Marginal costs differ from person to person. Where y denotes the number of boats built per year, boat builder 1 has a total cost function c(y) 7 y. Boat builder 2 has a total cost function c(y) = 7+2y, and more generally, for each i, from 1 to 100, boat builder i has a cost function c(y): = 7+ iy. If the price of boats is 15, how many boats will be built per year?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Transcribed Image Text:Building boats
=
On a tropical island there are 100 potential boat builders, numbered 1 through 100. Each can
build up to 8 boats a year, but anyone who goes into the boat-building business has to pay a
fixed cost of $7. Marginal costs differ from person to person. Where y denotes the number of
boats built per year, boat builder 1 has a total cost function c(y) 7 y. Boat builder 2 has
a total cost function c(y) = 7+2y, and more generally, for each i, from 1 to 100, boat
builder i has a cost function c(y): = 7+ iy. If the price of boats is 15, how many boats will
be built per year?
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