Big Oaks Can Produce Either Paper Products or Lumber with Each

question 175

Multiple Choice

Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amo paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable prop The above table summarizes Big Oaks production possibilities from each harvested tree.
-Refer to the table above. If the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50, what is the marginal benefit for each unit of lumber produced?

• A)$13.50
• B)$10.50
• C)$3.00
• D)$16.50

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