Scenario $10\mathrm{.}5$:

A firm produces garden hoses in California and in Ohio. The marginal cost of producing garden hoses in the two states and the marginal revenue from producing garden hoses are given in the following table:

California Ohio

$\backslash$table$[[$Qc$,$MCc$,$Qo$,$MCo,Qc $+$o$,$MR$],[1,2,1,3,1,24],[2,3,2,4,2,20],[3,5,3,6,3,16],[4,9,4,8,4,12],[5,16,5,12,5,8],[6,24,6,17,6,4]]$

Refer to Scenario $10\mathrm{.}5.$ From the perspective of the firm, what is the marginal cost of the $5$ th garden hose?

A$)4$

B$)5$

$16$

D$)12$

E$)8$

Answer: B

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}5.$ How many garden hoses should be produced in California in order to maximize profits?

A$)1$

B$)2$

C$)3$

D$)4$

E$)5$

Answer: C

Diff: $2$

Section: $10\mathrm{.}1$