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Q. A corporation is allowing for building a bridge across a river. The bridge would cost $2 million to build as well as nothing to maintain. The subsequent shows the company's anticipated demand over the lifetime of the bridge:
a. Illustrate would be its profit-maximizing cost if the company were to build the bridge? Would that be the efficient level of output? Why or why not?
b. Illustrate would be its profit or loss if the company is interested in maximizing profit, should it build the bridge?
c. Illustrate cost should it charge if the government were to build the bridge,
d. Illustrate should the government build the bridge?
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Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
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The opportunity cost of Juan's time is $8 per hour. If Juan receives $2 per pound for his fish, what is the optimal number of hours he should spend fishing.
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