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AMS recently instituted an in-house reprocessing program. The profits of this program include not only the benefits to the environment of recycling but also the goodwill generated by AMS's leadership in this area. The costs of recycling include all of the energy, labor, and space required to do the recycling. Suppose these benefits and costs are given by TR(Q)=100Q - 2Q2 and TC(Q) = 2Q (Note that MR = 100 - 4Q , and MC= 2 ).
a. What level of Q maximizes the profit of recycling?b. What is marginal benefit (revenue) at this level of Q?c. What is marginal cost at this level of Q?d. What level of Q minimizes the total costs of recycling?e. What level of recycling is optimal? Why?
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Line segments will automatically connect the points. Remember to plot from left to right also plot among integers.
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If a competitive firm hires another full-time worker, total output increases from 100 units to 110 units per week. Suppose the market price of output is $25 per unit. Illustrate what is the maximum weekly wage at which the firm would hire that add..
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