Question
a) Consider that 2 agents make up the demand side of a market. Person A's marginal benefits are = 60 0.25, and person B's marginal
a) Consider that 2 agents make up the demand side of a market. Person A's marginal benefits are = 60 0.25, and person B's marginal benefits are = 60 . Find and graph the equation for market-level marginal benefits.
(b) Consider that 2 agents make up the supply side of a market. Producer 1's marginal cost is 1 = 5 + 0.51, and producer 2's marginal cost is 2 = 5 + 2. Find and graph the equation for market-level marginal cost.
(c) Consider that 3 agents make up the supply side of a market. Producer 1's marginal cost is 1 = 3 + 0.31, and producer 2's marginal cost is 2 = 4 + 0.62, and producer 3's marginal cost is 2 = 1 + 0.13. Find and graph the equation for market-level marginal cost.
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