Refer to the graph shown. Total utility is at its maximum at point:

As the president of your firm, you are considering the purchase of a new piece of machinery. The machine is expected to increase profits by $5,000 per year for five years. After that, the machine will have no value

If the machine costs $22,000 and the market rate of interest is 5 percent, should your firm purchase the machine? Explain.

Refer to the graph shown. If labor costs $10 per unit and machines cost $15 per unit, the economically efficient cost of producing 1,000 units of output is:

A. $100. B. $300. C. $150. D. impossible to determine using the information given.