Suppose You Manufacture 10 Million Hard Drives Per Year Specifically

question 15

Short Answer

Suppose you manufacture 10 million hard drives per year specifically for Dell laptop computers.Suppose your average variable cost C=$20/unit and annualized cost of investment to build a hard drive factory I=$30 million.If Dell agrees to purchase the 10 million hard drives at a price P*=$25/unit,what is your company's "rent?

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Definitions:

Emitted Emissions

The pollutants released into the environment as a byproduct of economic activity, such as manufacturing or transportation.

Mercury

A heavy, silvery d-block element that is the only metallic element that is liquid at standard conditions for temperature and pressure.

Tradable Pollution Permits

A market-based approach to controlling pollution by offering a limited number of permits that allow the holder to emit a certain amount of pollutants, which can be bought and sold.

Municipal Sewage

Waste water and solids collected from a community, typically transported through a sewer system for treatment or disposal.