-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?
Definitions:
Nonblanchable
Describes a red area on the skin that does not turn white (or lighten) when pressure is applied, often indicative of pressure injuries.
Cerebral Palsy
A neurological disorder caused by a non-progressive brain injury or malformation that occurs while the child’s brain is under development.
Sacrum
A large, triangular bone at the base of the spine, forming the upper part of the pelvis.
Exposed Bone
A medical condition where bone is visible through the skin or an open wound, often requiring immediate treatment to prevent infection.
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