Chapter 6.odd - Chapter 6 Perfectly Competitive Supply The cost side of the market Odd-numbered Qs Q.3 9 Please refer to tutorial materials Problem#1

Chapter 6.odd - Chapter 6 Perfectly Competitive Supply The...

This preview shows page 1 - 6 out of 19 pages.

Chapter 6 Perfectly Competitive Supply: The cost side of the market Odd-numbered Qs. Q.3, 9 Please refer to “tutorial materials”
Image of page 1
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.
Image of page 2
Problem #1, Chapter 6 (2) Hours per day Total fossils per day 1 5 2 9 3 12 4 14 5 15
Image of page 3
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
Image of page 4
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,
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 19 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture