The Graph Below Represents the Market for Walnuts

question 160

Essay

The graph below represents the market for walnuts. Identify the values of the marginal benefit and the marginal cost at the output levels of 2000 pounds, 4000 pounds and 6000 pounds. At each of these output levels, state whether output is inefficiently high, inefficiently low, or economically efficient.

Determine the appropriate use of audience benefits in communication strategies.

Understand the concept of intrinsic and extrinsic motivators and their role in creating effective audience benefits.

Identify and explain the criteria for writing good audience benefits.

Analyze the interrelation between the key components of developing audience benefits.

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Definitions:

MC

Marginal Cost; the change in total production cost that arises when the quantity produced is incremented by one unit.

Marginal Cost

The cost of producing one additional unit of a product or service, an important concept in economics for decision-making regarding production levels.

Total Variable Costs

The sum of all costs that vary with the level of output, including materials, labor, and other expenses that increase or decrease as production changes.

Natural Monopoly

A market condition where due to high fixed costs or unique resources, a single company can supply a product or service at a lower cost than any potential competitor, thus dominating the market.