Refer to the table below. Suppose the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50 and Big Oaks is producing the profit-maximizing quantity of lumber and paper products. If the profit from each unit of lumber increases from $13.50 to $15.00 and the profit for each unit of paper products does not change, to maximize profit, Big Oaks should produce
a ________ proportion of lumber and produce ________ units of paper products and lumber.
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) smaller; less
B) smaller; more
C) greater; more
D) greater; less
C) greater; more
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Marginal benefit is the benefit
A) that your activity provides to someone else. B) of producing a good or service when the total benefit from the good or service exceeds its total cost. C) that is received from consuming one more unit of a good or service. D) of consuming another good or service divided by the total number of goods or services produced.
Which of the following statements is correct about a market in which pollution is emitted?
a. Both corrective taxes and pollution permits move the market toward the social optimum. b. Corrective taxes move the market toward the social optimum, but pollution permits do not move the market toward the social optimum. c. Pollution permits move the market toward the social optimum, but corrective taxes do not move the market toward the social optimum. d. Neither corrective taxes nor pollution permits move the market toward the social optimum.