A Playground Equipment Manufacturer Plans to Spend $300,000 on a New

question 8

Short Answer

A playground equipment manufacturer plans to spend $300,000 on a new facility plus $140 for each swing set made.The formula C = 140n + 300,000 gives the cost in dollars to manufacture n swing sets. What is the marginal cost of the nth swing set? [Hint - the marginal cost of the nth swing set is the difference in cost of producing n + 1 swing sets and n swing sets).

Evaluate the effects of income changes on the demand for goods.

Understand the relationship between goods' prices and the demand for complementary and substitute products.

Analyze the impact of external factors, such as technological advancements and international trade policies, on market prices.

Understand the concept of consumer satisfaction and diminishing marginal utility.

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Definitions:

Isolation

The state of being separated from others, which can be physical, social, or emotional.

Compensation

A psychological strategy whereby an individual tries to counterbalance perceived deficiencies by emphasizing strengths in other areas.

Phallic Stage

A phase in Freudian psychosexual development, occurring between about ages 3 and 6, during which the libido is centered on the genital area.

Industry

The production of goods or services within an economy, characterized by sectors like manufacturing, services, and technology.