Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q;
MSB = 30 - 0.3Q; MEB = 0. Use these relationships to answer any or all of Questions.
-According to these relationships, the efficient output level arises where

Question

Quizplus · Accepted Answer

The efficient output level arises where MSC = MSB. Setting the two equations equal to each other and solving for Q, we get:10 + 0.5Q = 30 - 0.3Q0.8Q = 20Q_E = 25

Consider the Following Model for the Production of Refined Oil