Economically efficicient quantity derived from MC equation and MB amount

timer Asked: Mar 2nd, 2015

Question description

It's possible to hire a guide and boat to take you out fishing in the Gulf of Mexico. Suppose that the marginal benefit of each trip taken by customers is $100. Suppose that the marginal cost (MC) to companies of taking customers fishing (Q is the quantity of trips) can be represented by the equation MC = 15 + Q/60. Assume fishing trips are private goods and that they do not create externalities.

What is the economically efficient quantity of trips in this market?

Tutor Answer

(Top Tutor) Studypool Tutor
School: New York University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors