After mining 9,273 tons of coal, Blue Sky Minings managers note that the marginal cost of mining
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After mining 9,273 tons of coal, Blue Sky Mining’s managers note that the marginal cost of mining the next ton of coal would be $40 per ton. They also calculate that the user cost of mining that next ton of coal would be $35. If the market price of coal is $72, should Blue Sky mine an additional ton of coal?
a. Yes.
b. No.
c. More information is needed.
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Answer no Blue Sky should not mine another ton of coal because the total cost of doing so woul...View the full answer
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Related Book For
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
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