Question
Suppose a product can be produced using virgin ore at a marginal cost given by MC1 recycled materials at a marginal cost of MC2
Suppose a product can be produced using virgin ore at a marginal cost given by MC1 recycled materials at a marginal cost of MC2 = 5 + 0.1q2. a. If the inverse demand curve were given by P = 10? 0.5(q1 + q2), how many units of the product would be produced with virgin ore and how many with recycled units? b. How would this change if the inverse demand function were P = 17?0.5(q1 + q2)? 0.5q, and with
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
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