Answer the Question $\mathrm { c } = 25 \sqrt { \mathrm { n } + 81 }$

question 1

Multiple Choice

Answer the question.
-The cost of manufacturing clocks is given by $\mathrm { c } = 25 \sqrt { \mathrm { n } + 81 }$ , where $\mathrm { c }$ is the total cost and $\mathrm { n }$ is the number produced. What is c when no clocks are produced?

• A) \(\$ 45\)
• B) \(\$ 2025\)
• C) \(\$ 225\)
• D) \(\$ 25\)

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Definitions:

Coase Theorem

A principle stating that if trade or bargaining is possible without cost, then the allocation of resources will be efficient and invariant to the allocation of property rights.

Externality

A side effect or consequence of an economic activity that affects other parties without this being reflected in the cost of the goods or services involved.

Compensation

A broad term referring to the combination of salaries, wages, benefits, and other forms of value provided to employees for their services.

Private Bargaining

The process through which individual parties negotiate terms and conditions exclusively among themselves without the intervention of external regulations.