Q-2. If the general manger decides to manufacture ten light compressors each week and to sell them at a price of $8,000, how much better or worse off financially would Catawba be? What would be the opportunity cost of this decision? Tip: Use marginal analysis and assume the costs of a regular weekday (Answer: marginal benefit = $51,500). What would be the net weekly marginal benefit after considering the opportunity costs? (Answer = $22,750).
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