In Ecoland, producers make both televisions and clocks. At current production levels, the marginal cost of producing a clock is $50 and the marginal cost of producing a television is $150. a. How many clocks must Ecoland give up if it wishes to produce another television? b. What is the marginal rate of transformation from clocks to televisions in Ecoland? c. At current production levels, consumers are willing to give up 2 clocks to obtain another television. Is Ecoland achieving output efficiency? Explain.

In Ecoland, producers make both televisions and clocks. At current production levels, the marginal cost of producing a clock is $50 and the marginal cost of producing a television is $150. a. How many clocks must Ecoland give up if it wishes to produce another television? b. What is the marginal rate of transformation from clocks to televisions in Ecoland? c. At current production levels, consumers are willing to give up 2 clocks to obtain another television. Is Ecoland achieving output efficiency? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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