If Ben and Madysen considered specializing in one good and trading with the other, then they would be better off if:

a. Not enough information has been provided to answer the question.
b. Ben specialized in tacos and Madysen specialized in enchiladas.
c. They rejected specialization since both producers should live within their means.
d. Madysen specialized in tacos and Ben specialized in enchiladas.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?