Using the table above suppose that greater availability of his buddy Bearclaw to play raises Balin’s opportunity cost to run by 6 utils per hour (i.e. the marginal costs rises by 6 utils for each hour). Show how this would affect the graph (draw a new graph showing the original and the new). Would it change the optimal amount that Balin should run each week? Explain.
Using the table above suppose that greater availability of his buddy Bearclaw to play raises Balin’s opportunity cost to run by 6 utils per hour (i.e. the marginal costs rises by 6 utils for each hour). Show how this would affect the graph (draw a new graph showing the original and the new). Would it change the optimal amount that Balin should run each week? Explain.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4CQQ
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Question
Quantity of hours/week Total benefit (in utils) Total cost (in utils)
1 30 5
2 50 10
3 67 17
4 81 26
5 92 37
6 100 50
7 105 65
Using the table above suppose that greater availability of his buddy Bearclaw to play raises Balin’s
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