Principles of Macroeconomics
6th Edition
ISBN: 9780073518992
Author: Robert H. Frank, Ben Bernanke Professor, Kate Antonovics, Ori Heffetz
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1.4CC
To determine
Explain how many shuttle should NASA have launch if the marginal benefit is $9.
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The table shows the quantity of gold bars (in thousands) and the extraction cost per gold bar (in dollars) for the Acme Company. Use these data to answer the questions below.
Quantity of Gold Bars (thousands)
Extraction Cost ($ per bar)
0
30,000
1
35,000
2
40,000
3
45,000
4
50,000
5
55,000
Instructions: Enter your answers as a whole number.
a. If the user cost is $10,000 and the current price of a gold bar is $55,000, how many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits?
bars
b. Now suppose that the user cost decreases by $5,000 such that the new user cost is $5,000, but the price remains the same. How many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits?
bars
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Chapter 1 Solutions
Principles of Macroeconomics
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