Exhibit 13-8

-The GreenAcres mowing company wants to buy the new "Titan3000" lawn mowers.Assume that the lawn mowers are expected to last indefinitely,that operating expenses are negligible,and that the price per acre of mowed lawn is expected to remain constant in the future.The lawn mowing market is perfectly competitive with a market price of $25 per acre.The price of a "Titan300" lawn mower is $5,000.Exhibit 13-8 shows the number of acres that can be mowed with the new lawn mowers.The marginal product of the second lawn mower is:

Question

Exhibit 13-8
 
-The GreenAcres mowing company wants to buy the new "Titan3000" lawn mowers.Assume that the lawn mowers are expected to last indefinitely,that operating expenses are negligible,and that the price per acre of mowed lawn is expected to remain constant in the future.The lawn mowing market is perfectly competitive with a market price of $25 per acre.The price of a "Titan300" lawn mower is $5,000.Exhibit 13-8 shows the number of acres that can be mowed with the new lawn mowers.The marginal product of the second lawn mower is:

Quizplus · Accepted Answer

The marginal product of the second lawn mower is the additional output produced by adding a second lawn mower, which is the difference between the total output produced with two mowers and the total output produced with one mower. From Exhibit 13-8, the total output produced with one mower is 100 acres, and the total output produced with two mowers is 170 acres. Therefore, the marginal product of the second lawn mower is 170 - 100 = 70 acres.

Exhibit 13-8 -The GreenAcres Mowing Company Wants to Buy the New "Titan3000