A small coffee company roasts coffee beans in its shop.The unroasted beans cost the company $2 per pound.The marginal cost of roasting coffee beans is $(150 - 10q + q2) /100 per pound when q pounds are roasted.The smell of roasting beans imposes costs on the company's neighbors.The total amount that neighbors would be willing to pay to have the shop stop roasting altogether is 5q2, where q is the number of pounds being roasted.The company sells its output in a competitive market at $4.50 per pound.What is the socially efficient amount of coffee for the company to roast?
A) 10 pounds.
B) 15 pounds.
C) the square root of 10 pounds.
D) 45 pounds.
E) None of the above.
Correct Answer:
Verified
Q15: Mike's utility function is U(c, d, h)=
Q16: Mobil Oil Corporation recently bought the right
Q17: If preferences are quasilinear, then the delineation
Q18: The 130 campers at Bear Creek Campground
Q19: Two stores are located side by side
Q21: Marbella has 101 residents.All wear the same
Q22: Charlie's utility is U(c, d, h)= 4c
Q23: An apiary is located next to an
Q24: An apiary is located next to an
Q25: A clothing store and a jeweler are
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents