Asked by
Stephany Flores
on Oct 14, 2024Verified
Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it were also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.67 per car, it would be worthwhile for him to buy this high-quality smasher if he needed to dispose of
A) no more than 525 cars per year.
B) no more than 1,050 cars per year.
C) at least 1,060 cars per year.
D) at least 1,050 cars per year.
E) at least 525 cars per year.
Marginal Cost
The growth in total expenses incurred from making one more unit of a product or service.
High-Quality Hydraulic
Refers to hydraulic systems or components that are characterized by superior performance, durability, and efficiency.
- Analyze the effects of changes in factor prices on the choice of production technology.
- Determine the most advantageous level of production for minimizing financial outlays or maximizing income.
Verified Answer
RL
Learning Objectives
- Analyze the effects of changes in factor prices on the choice of production technology.
- Determine the most advantageous level of production for minimizing financial outlays or maximizing income.