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Question
Suppose a fish farm has the following marginal cost schedule:
Baskets per hour
Marginal Cost Total Cost
1 $5 $15
2 $7 $22
3 $9 $31
4 $13 $44
5 $17 $61
6 $25 $86
7 $32 $118
(a) How many baskets of fish should be harvested at market prices of
i. $7
ii. $13
iii. $25
(b) How much profit does the farmer make at each of these prices in (a)?
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