Multiple Choice
On a tropical island there are 100 potential boat builders, numbered 1 through 100. Each can build up to8 boats a year, but anyone who goes into the boatbuilding business has to pay a fixed cost of $7. Marginal costs differ from person to person. Where y denotes the number of boats built per year, boat builder 1 has a total cost function c(y) = 7 + y. Boat builder 2 has a total cost function c(y) = 7 + 2y, and more generally, for each i, from 1 to 100, boat builder i has a cost function c(y) = 7 + iy. If the price of boats is 15, how many boats will be built per year?
A) 112
B) 64
C) 32
D) 168
E) Any number between 120 and 128 is possible.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: In the absence of government interference, there
Q6: The price elasticity of gasoline in the
Q16: If there are constant returns to scale
Q17: In the absence of government interference, there
Q19: Two firms constitute the entire doghouse industry.
Q20: In a certain industry, the supply curve
Q23: In the absence of government interference, there
Q25: In the problem discussed in your workbook,
Q28: In a certain industry, the supply curve
Q43: It is possible to have an industry