Question
Sweaters sell for $20 at the crafts fair. Allie knits sweaters and her marginal costs are given in the table below. Allies marginal costs increase
Sweaters sell for $20 at the crafts fair. Allie knits sweaters and her marginal costs are given in the table below. Allie’s marginal costs increase with each additional sweater. If Allie is behaving rationally, how many sweaters will she sell?
| Marginal Cost ($) | |
| 1st sweater | 3 |
| 2nd sweater | 6 |
| 3rd sweater | 10 |
| 4th sweater | 16 |
| 5th sweater | 23 |
| 6th sweater | 30 |
Step by Step Solution
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Step: 1
analysis To determine the number of sweaters Allie will sell we need to compare her marginal co...
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Microeconomics
Authors: Dean Karlan, Jonathan Morduch
1st edition
978-0077332587, 007733258X, 978-0077332648, 77332644, 978-1259163531
