Answer to Question #249338 in Microeconomics for Rich

Question

A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught:
Hours Quantity of Fish (Kg)
0 0
1 10
2 18
3 24
4 28
5 30

10. What is the marginal product of each hour spent fishing. (15Marks)

11. Use these data to graph the fisherman’s production function. Explain its shape. (15Marks)

12. The fisherman has a fixed cost pf $10 (his pole). The opportunity cost of his time is $5 per hour. Graph the fisherman’s total cost curve. Explain its shape. (15Marks)

Answer 1

a.

b.

From the graph:

TP- grows constantly

AP and MP falls displaying a negative slope

c

TC reflects a positive slope. It grows as variable cost grows.