Answer to Question #137948 in Microeconomics for Annapoorna.K

Question

Ernie owns a water pump. Because pumping
large amounts of water is harder than pumping
small amounts, the cost of producing a bottle of
water rises as he pumps more. Here is the cost
he incurs to produce each bottle of water:
Cost of first bottle $1
Cost of second bottle $3
Cost of third bottle $5
Cost of fourth bottle $7
a. From this information, derive Ernie’s supply
schedule. Graph his supply curve for bottled

Answer 1

Ernie's supply schedule for water is:-

PRICE QUANTITY SUPPLIED

More that $7 4

$5 to $7 3

$3 to $5 2

$1 to $3 1

Less than $1 0

The supply graph is as attached below:-