Nanotech is ready to begin production of its exciting new technology. the company is evaluating three methods of production: (a) a small production facility with older equipment, (b) a larger production facility that is more automated, and (c) subcontracting to an electronics manufacturer in singapore. process a has a fixed cost of $200,000 and a variable cost of $40 per unit. process b has a fixed cost of $600,000 and a variable cost of $20 per unit. process c has no fixed cost since the item is purchased. it's variable cost is the purchase price of $60 per unit. for what levels of demand would each process be desirable?

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4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.