Question #8223
A commercial fisherman notices the following relationship between hours spent fishing and
the quantity of fish caught:
Quantity of Fish
Hours (in pounds)
0 hours 0 lb.
1 10
2 18
3 24
4 28
5 30
a. What is the marginal product of each hour spent fishing?
b. Use these data to graph the fisherman’s production function. Explain its shape.
c. The fisherman has a fixed cost of $10 (his pole). The opportunity cost of his time is $5per hour. Graph the fisherman’s total-cost curve. Explain its shape
the quantity of fish caught:
Quantity of Fish
Hours (in pounds)
0 hours 0 lb.
1 10
2 18
3 24
4 28
5 30
a. What is the marginal product of each hour spent fishing?
b. Use these data to graph the fisherman’s production function. Explain its shape.
c. The fisherman has a fixed cost of $10 (his pole). The opportunity cost of his time is $5per hour. Graph the fisherman’s total-cost curve. Explain its shape
Expert's answer
a)
b)
TP – constantly grow, so curve has positive slope
AP and MP constantly fall, so curve has negative slope
c)
TC – constantly grow because variable costs grow in equal proportion, so curve has positive slope
