There are three consumers of a public good. The demands for the consumers are as follows: Consumer 1: P1 = 60 – Q Consumer 2: P2 = 100 – Q Consumer 3: P3 = 140 – Q where Q measures the number of units of the good and P is the price in dollars. Now the marginal cost of the public good is $ 60 . What is the economically efficient level of production of the good?

80

Explanation:

To get the economically efficient level of production of the good, we will sum up the demand for consumers and equate them to the marginal cost of the public good.

Note that the economically efficient level of output occurs where MSB = MC on the graph. Therefore, since MSB = MC occurs where all the three consumers are in the market, then we'll have;

(60-Q) + (100-Q) + (140-Q) = 60

Expand the brackets

60-Q+100-Q+140-Q = 60

Collect like terms and sum up

300-3Q = 60

3Q = 300-60

3Q = 240

Q = 80

Therefore, the economically efficient level of the production of the good is 80

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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