12. Problems and Applications Q4 A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 50 100 150 4 200 3 250 2. 300 350 400 2 300 350 400 If the company were to build the bridge, its profit-maximizing price would be $ , and it produce the efficient level of output. If the company is interested in maximizing profit, it build the bridge because profit would be $ (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ True or False: The government should build the bridge. O True O False
12. Problems and Applications Q4 A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 50 100 150 4 200 3 250 2. 300 350 400 2 300 350 400 If the company were to build the bridge, its profit-maximizing price would be $ , and it produce the efficient level of output. If the company is interested in maximizing profit, it build the bridge because profit would be $ (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ True or False: The government should build the bridge. O True O False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:12. Problems and Applications Q4
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows
the company's anticipated demand over the lifetime of the bridge:
Price
Quantity
(Dollars per crossing) (Thousands of crossings)
8
50
100
150
4
200
3
250
2.
300
350
400
Transcribed Image Text:2
300
350
400
If the company were to build the bridge, its profit-maximizing price would be $
, and it
produce the efficient level of output.
If the company is interested in maximizing profit, it
build the bridge because profit would be $
(Note: If the
company incurs a loss, be sure to enter a negative number for profit.)
If the government were to build the bridge, it should charge a price of $
True or False: The government should build the bridge.
O True
O False
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