-The Figure Above Provides Information for a Factory That Produces

question 215

Multiple Choice

-The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. The efficient quantity of chemicals to produce is ________ tons of chemicals a week.

• A) 1 ton
• B) as many tons as possible
• C) 3 tons
• D) 5 tons

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Profit Maximized

The point at which a firm achieves the highest profit possible, considering the level of output and cost of production.

Competitive Price-Taker

An entity in a market that has no control over the prices at which its products are sold, typically due to intense competition and product uniformity.

Marginal Cost

The cost of producing one additional unit of a product.