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SP2019 ECON-3140-02-Intermediate Microeconomics Homework: Chapter 8 Homework 18 of 25 (25 c Score: 0.5 of 1 pt Concept Question 5.4 Suppose you are managing an oil refinery in a perfectly competitive market that converts crude oil into a particular mix of products, including gasoline, jet fuel, and residual fuel oil for home heating. Your refinery uses different processing units to turn crude oil into finished products. When a particular processing unit reaches capacity, output can be increased only by substituting a more expensive process. In particular, the marginal cost (MC) of producing as many as 2,000 barrels of output is MC(q)-0.001q the marginal cost of producing between 2,000 and 4,000 barrels is a constant MC-2 and the marginal cost of producing 4,000 to 10,000 barrels is MC(q)-2+0.002(q-4,000). Using the line drawing tool, draw your refinery's marginal cost curve in the figure to the right. This curve will be comprised of three line segments labeled MCSegment 1. MCsegment 2. and MCSegment 3 Carefully follow the instructions above, and only draw the required objects. f the market price is $4 per barrel of output, then your refinery should producebarrels to maximize profit. (Enter your response using an integer.) Enter your answer in the answer box and then click Check Answer. Clear A

Answer 1

ML2 oD0 me 2 A 400 uni2