sol_odd_06

Sol_odd_06 - Problem#1 Chapter 6(1 Zoe is trying to decide how to divide her time between her job as a wedding photography which pays $27 per hours

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Problem #1, Chapter 6 (1) Zoe is trying to decide how to divide her time between her job as a wedding photography, which pays $27 per hours for as many hours as she chooses to work, and as a fossil collector, in which her pay depends both on the price of fossils and the number of them she finds. Earnings aside, Zoe is indifferent between the two tasks, and the number of fossils she can find depends on the number of hours a day she researches, as shown in the table below.
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Problem #1, Chapter 6 (2) Hours per day Total fossils per day 1 5 2 9 3 12 4 14 5 15
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Solution to Problem #1 (1) Derive a table with a price in dollar increments from $0 to $30 in the first column and the quantity of fossils Zoe is willing to supply per day at that price in the second column
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Solution to Problem #1 (2) In the first hour, Zoe can collect 5 fossils If the price of a fossil is $5, Zoe can make a total $25 in an hour if she devotes all her time to collecting fossils, which is less than the money she can earn from photography Thus, she won’t collect fossil if the price of a fossil is less than $5 If the price of a fossil is $6 Zoe should devote all her time to photography, as she can make $30 an hour from photography
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Solution to Problem #1 (3) An additional hour would yield only 4 additional fossils or $24 additional revenue, so she should not spend any further time looking for fossils If the price of fossils rises to $7, however, the additional hour gathering fossils would yield an additional $28, so gathering fossils during that hour would then be the best choice, and Zoe would therefore supply 9 fossils per day
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Solution to Problem #1 (4) Price of fossils ($) # of fossils supplied / day 0 – 5 0 6 5 7, 8 9 9 – 13 12 14 – 26 14 27+ 15
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Solution to Problem #1 (5) Plot these points in a graph with price on the vertical axis and quantity per day on the horizontal. What is this curve
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This note was uploaded on 09/06/2010 for the course FBE ECON1001 taught by Professor Dr.demurger during the Fall '08 term at HKU.

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Sol_odd_06 - Problem#1 Chapter 6(1 Zoe is trying to decide how to divide her time between her job as a wedding photography which pays $27 per hours

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