Use Figure 6.5 to determine

(a) How many baskets of fish should be harvested at market prices of

(i) $9

(ii) $13

(iii) $17

(b) How much total revenue is collected at each price?

(c) How much profit does the farmer make at each of these prices?

Transcribed Image Text:

$18 Marginal cost 16 p = MC Profits decreasing (p < MC) 14 Price 12 Profits increasing (p > MC) 10 Profit-maximizing rate of output 4 МCв 2 3 4 5 6. QUANTITY (baskets of fish per hour) PRICE OR COST (per basket) (1) (4) (7) (3) (5) (6) Number Total Total Revenue Cost Marginal Total Profit of Baskets (per Hour) Price Price Cost $10.00 15.00 -$10.00 - 2.00 + 4.00 + 8.00 + 8.00 $13.00 $13.00 $13.00 13.00 13.00 13.00 13.00 $ 5.00 13.00 26.00 22.00 7.00 3 4 13.00 39.00 31.00 9.00 44.00 13.00 13.00 52.00 13.00 65.00 61.00 + 4.00 17.00 ABC DEF