Please help: Use the information in the following table to answer the next two q

Question

Please help:

Use the information in the following table to answer the next two questions. This salt processing firm is perfectly competitive and is not forced to take damage costs into account. If the market price of salt is $30 a ton, the firm will produce 0 tons of salt 2 tons of salt 3 tons of salt 4 tons of salt This salt processing firm is perfectly competitive and is forced to take damage costs into account. If the market price of the product is S30, the firm will produce 0 tons of salt 2 tons of salt 3 tons of salt 4 tons of salt

Explanation / Answer

3)

In perfectly competative market P = MC(if damage costs is not taken into accounts)

So the answer is

c) 3 tons of salts

4)

In perfectly competative market P = MSC(if damage costs is taken into accounts)

So the answer is

c) 2 tons of salts

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