Wednesday
April 16, 2014

Homework Help: Marginal Analysis

Posted by Ed on Friday, June 1, 2007 at 10:50pm.

Applacian Coal Mine Co believes it can increase labor productivity and therefore, net revenue by reducing air pollution in its mines. It is estimated that the marginal cost for reducing pollution by installing additional capital equipment is MC = 40P....where P represents a reduction of one unit of pollution in the coal mines, the comapny feels that for every unit of pollution reduction the marginal increase in revenue (MR) is: MR=1,000 - 10P. How much pollution reduction should the coal mine company undertake?

Use algebra. Set MC=MR, then solve for P.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

managerial economics - Appalachian Coal Mining believes that it can increase ...
Economics - Appalachian Coal Mining believes that it can increase labor ...
managerial economics - Appalachian Coal Mining believes that it can increase ...
Microeconomics - If the wage exceeds the value of the marginal product of labor...
calculus - the productivity of a country in western Europe is given by the ...
econimics - state whether the monopolist would increase or decrease output: a. ...
Introduction programing visual basic - break even analysis. suppose a certain ...
Micoreconomics - As a general rule, profit-maximizing producers in a competitive...
Microeconomics - As a general rule, profit-maximiaing producers in a competitive...
advanced math - The marginal cost of a product can be thought of as the cost of ...

Search
Members