1001majorch6

1001majorch6 - ECON1001AB IntroductiontoEconomicsI...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 1001 AB Introduction to Economics I Dr. Ka-fu WONG Sixth week  of tutorial sessions KKL 925, K812, KKL 106 Clifford CHAN KKL 1109 givencana@yahoo.ca
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Covered and to be covered Covered the week before the break Dr. Wong finished up to kf006.ppt You should have at least read up to Chapter 6 Perfectly competitive supply: The cost side of the market If not, please press hard on it. Start reading Chapter 7 To be covered in the tutorial sessions this week Problems in chapter 6: #1, #3, #5, #7 and #9 You are advised to work on the even ones as well
Background image of page 2
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.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Problem #1, Chapter 6 (2) Hours per day Total fossils per day 1 5 2 9 3 12 4 14 5 15
Background image of page 4
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
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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
Background image of page 6
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
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/21/2011 for the course ECON 1001 taught by Professor S.c during the Fall '10 term at HKU.

Page1 / 31

1001majorch6 - ECON1001AB IntroductiontoEconomicsI...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online