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09:00 PM Available From: Due Date Points Possible: Grade Category: Description Policies: 10/8/2015 Question 4 of 14 10/22/2015 07:00 PM 100 Graded HW Mapd sapling leaming Noah produces hand-blown light bulbs out of his garage and has a steady customer base. As his business grows, he realizes that selling packs of light bulbs instead of selling them individually is more profitable. He must decide how many bulbs to include in each pack. Each light bulb costs $1.00 to produce. The following graph depicts the marginal benefit received from each additional bulb that he includes in the pack Penalty Scheme - Fall 2 Place point A on the optimal point of production on the graph You can check your answers You can view solutions after the due date You have four attempts per question Marginal benefit If Noah initially produced 7 light bulbs, which of the following would increase his profit? 4 O O You lose 15% of the points available to each answer in your question for each incorredt at that answer Include fewer light bulbs in each pack Begin to sell individual light bulbs again Decrease the price of each light bulb pack Include more light bulbs in each pack For multiple-choice questions, the penalty on the number of choices available Marginal cost ieTextbook i Help With This Topic iWeb Help & Videos iTechnical Support and Bug Reports 4 Quantity of light bulbs 2 3 Previous O Check Answer Next Exit Hint - 55 about uscareerspartnersprivacy policy terms of usecontact us helpExplanation / Answer
Point A will lie on the intersection of marginal benefit curve and marginal cost curve i.e. at a quantity of 5 bulbs.
If he initially produced 7 bulbs then including fewer light bulbs in each pack will increase his profit.
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