Assume that the equation for demand for bread at a small bakery is Qd = 60 – 10Pb + 3Y, where Qd is the quantity of bread demanded in loaves, Pb is
September 3, 2020
One advantage of the Herfindahl index over the concentration ratio is that it: tells about only the top 50 firms in an industry. takes into account…
September 3, 2020

For the next several questions, consider the market for a type of medical implant used to treat pain conditions. The implant is produced by a profit-maximizing, price taking firm for which the demand and marginal cost “curves” are straight lines. It charges $380 per unit and, considering only private costs, decides to produce 920 units.

Because production of the implant results in water pollution, a government agency intervenes. It determines that when 920 units are produced there are marginal social costs of $510. It therefore concludes that 740 units should instead be produced. At 740 units, marginal private cost is $305.

Enter only numbers and a decimal point where needed – nothing else. Round to the nearest penny.

Given this information and what we know about firms, at 920 units marginal private cost must be

KM
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