Calculate the recycling ratio

Reference no: EM13695226

Suppose a product can be produced using virgin ore at a constant marginal cost given by MCv=5 and with recycled materials at a marginal cost given by MCr=3+0.5q . If the (inverse) demand curve where given by P=10-0.5q , how many units of the product would be produced with virgin ore and how many units with recycled materials? Calculate the recycling ratio? Show your calculations.

Reference no: EM13695226

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