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A factory is situated next to a dormitory for nurses who work night shifts. The factory produces 120 units of humanoid robots a day. The
A factory is situated next to a dormitory for nurses who work night shifts. The factory produces 120 units of humanoid robots a day. The production process is very noisy, and the nurses often complain that their sleep is disturbed. The following graph depicts the MPC and MSC of the robot factory production. The robot market is competitive and the market price is E340. Based on this information, which of the following statements is/are correct? 600 SOO 400 Costs ($) 300 200 100 10 20 30 40 50 60 70 80 90 100 110 120 130 140 Output Q Select one or more: a. At O = 80, both the factory and the nurses could benefit from the factory paying a fee to the nurses to increase output.Costs (3) 300 200 100 10 40 50 0 70 2 20 10 10 120 1 14 Output Q Select one or more: 0 a. At O = 80, both the factory and the nurses could benefit from the factory paying a fee to the nurses to increase output. b. The efficient level of output is 0, where there is zero marginal external cost to the nurses. V c. The efficient level of output is the factory's profit- maximising quantity, which is 120. v d At O = 120, both the factory and the nurses could benefit from the nurses paying a fee to the factory to reduce output. O e. At Q = 0, both the factory and the nurses could benefit from the factory paying a fee to the nurses to increase output
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