-Suppose a Factory Can Be Designed to Produce Either Trucks

question 54

Essay

-Suppose a factory can be designed to produce either trucks or cars. The figure above shows the marginal cost and marginal benefit of producing trucks in terms of the forgone cars.
a) What is the marginal benefit of the 25th truck?
b) What is the marginal cost of the 25th truck?
c) Should the 25th truck be produced? Why or why not.
d) What is the marginal benefit of the 75th truck?
e) What is the marginal cost of the 75th truck?
f) Should the 75th truck be produced? Why or why not?
g) What is the allocatively efficient quantity of trucks?

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Definitions:

Indian Society

is the societal structure and cultural patterns found within India, characterized by a rich diversity of religions, languages, customs, and traditions.

Economic Values

The principles or standards guiding the worth of activities, goods, services, and transactions in an economic system, often influencing production, distribution, and consumption decisions.

Economic Activity

Engagements and actions that involve the production, distribution, and consumption of goods and services within an economy.

Puritan Control

The influence or governance exercised by Puritans, especially in early American colonial settlements, characterized by strict religious conformity and moral codes.