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mizing costs? 2. Why do newspaper boxes use a simple technology that allows occasional cheaters to remove more than one newspaper, while soft-drink machines use
mizing costs"? 2. Why do newspaper boxes use a simple technology that allows occasional cheaters to remove more than one newspaper, while soft-drink machines use a more complicated technology to ensure that each customer gets only one drink? (Hint: There are at least two explanations for this phenomenon. One involves the concept of marginal cost; the other relies on the concept of marginal utility.) 3 . One wheat farm has very rich soil that requires little irrigation or care, while a neighboring wheat farm has very poor soil that requires constant intervention to pro- duce wheat. Suppose that each farm is producing the profit-maximizing level of out- put. For which farm (if either) will the marginal cost of producing another bushel of wheat be higher? (Hint: Under what type of market structure is wheat sold?)
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