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Which of the following answers are correct and why? The following represents a version of the textbook's bananas- Weevokill-fishermen example - demand curve -- private
Which of the following answers are correct and why?
The following represents a version of the textbook's bananas- Weevokill-fishermen example - demand curve -- private marginal cost - - private marginal cost + external marginal cost - - external marginal cost 160 155 150 145 140 135 130 125 120 115 110 105 Price, costs o demand curve private marginal cost external marginal cost 100 0 200 250 300 350 400 450 500 550 0 650 700 0 750 800 850 900 950 1000 1050 1100 1150 1200 Quantity of bananas (tons) Which of the following statements are correct? O a. If banana planters produce 1000 tons of bananas, they inflict 2000 worth of damage on the fishermen. O b. If banana planters choose their production to maximise profit, they will produce 600 tons of bananas. O c. If banana planters produce 1000 tons of bananas, they inflict 10000 worth of damage on the fishermen. O d. If banana planters choose their production to maximise profit, they will produce 800 tons of bananas. O e. If banana planters produce 1000 tons of bananas, they inflict 4000 worth of damage on the fishermen. O f. If banana planters produce 600 tons of bananas, they inflict no damage on the fishermenStep by Step Solution
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