Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Suppose you want to remove ten fish of an exotic species that have illegally been introduced to a lake. You have three possible removal

a. Suppose you want to remove ten fish of an exotic species that have illegally been introduced to a lake. You have three possible removal methods. Assume that q1, q2 and q3 are, respectively, the amount of fish removed by each method that you choose to use so that the goal will be accomplished by any combination of methods such that q1 +q2 +q3=10. If the marginal costs of each removal method are, respectively, $10q1, $5q2, and $2.5q3, how much of each method should you use to achieve the removal cost-effectively?

b. Why isn't an exclusive use of method 3 cost-effective?

c. Suppose that the three marginal costs were constant (not increasing as in the previous case) such that MC1=$10, MC2=$5, and MC3=$2.5. What is the cost-effective outcome in that case?

Step by Step Solution

3.31 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

Quiz a Answer To both get the correct total and to equate marginal costs the ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing The Core

Authors: Roger A. Kerin, Steven W. Hartley, William Rudelius

5th edition

9780077517083, 78028922, 77517083, 978-0078028922

More Books

Students also viewed these Economics questions

Question

Suppose you want to calculate P(a Answered: 1 week ago

Answered: 1 week ago

Question

Why are stereotypes so resistant to change?

Answered: 1 week ago

Question

Compare and contrast some methods of measuring intelligence.

Answered: 1 week ago