Could someone please help me to asnwer these tw economics questions?
The following table shows the marginal benefits (MB) of consuming chocolate bars.
Chocolate Bars (unit) 1 2 3 4 5
MB $10 $8 $6 $4 $2
Suppose that the market price of chocolate bars is $7 per unit and you cannot buy a portion of a chocolate bar. How many chocolate bars should you buy?
b. Peter has a problem of mice. There are 100 mice going into Peter’s barn and they are eating the rice that Peter has stored in his bran. It is estimated that each mouse will cause Peter a damage of $10. The marginal cost of preventing a mouse from getting into his bran can be described by the following equation:
MC=0.125q, where q is the number of mice prevented.
Should Peter keep all the mice out of his bran? If not, how many mice should Peter allow to go into his bran?
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