The following table shows Mickey and Minnie's total costs for producing salads: Mickey Quantity 0 1...

 

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The following table shows Mickey and Minnie's total costs for producing salads: Mickey Quantity 0 1 2 3 4 5 6 7 8 9 10 Total Cost 0 1 4 9 16 25 36 49 64 81 100 Marginal Cost Quantity 7 9 10 0 1 2 3 4 5 6 Minnie Total Cost 0 4.5 52.5 64 76.5 90 10 16.5 24 32.5 42 Marginal Cost Mickey wants 6 salads while Minnie wants 2 [a] If Mickey produces 6 salads, what will be his marginal cost? If Minnie produces 2 salads, what will be her marginal cost? [b] Is independent salad production efficient? Why? [c] Assume Mickey and Minnie are willing to work together in an effort to minimize the cost of producing 8 salads. How much salad should Mickey produce? How much should Minnie produce? How much money will be saved? [d] Identify an exchange of salads and money between Mickey and Minnie that will leave both better off. The following table shows Mickey and Minnie's total costs for producing salads: Mickey Quantity 0 1 2 3 4 5 6 7 8 9 10 Total Cost 0 1 4 9 16 25 36 49 64 81 100 Marginal Cost Quantity 7 9 10 0 1 2 3 4 5 6 Minnie Total Cost 0 4.5 52.5 64 76.5 90 10 16.5 24 32.5 42 Marginal Cost Mickey wants 6 salads while Minnie wants 2 [a] If Mickey produces 6 salads, what will be his marginal cost? If Minnie produces 2 salads, what will be her marginal cost? [b] Is independent salad production efficient? Why? [c] Assume Mickey and Minnie are willing to work together in an effort to minimize the cost of producing 8 salads. How much salad should Mickey produce? How much should Minnie produce? How much money will be saved? [d] Identify an exchange of salads and money between Mickey and Minnie that will leave both better off.

Answer rating: 100% (QA)

Based on the provided table of total costs for salad production by Mickey and Minnie we can address each question as follows a If Mickey produces 6 salads his marginal cost can be determined by findin... View the full answer