1
answer
0
watching
2,048
views
29 Sep 2019
Emmanuel enjoys growing zucchini in his garden and then selling his produce at the local farmers' market. The table below shows his marginal benefit and marginal cost for each hour he spends in his garden per week. The figure below plots the marginal benefit and marginal cost points.
Emmanuel's Marginal Benefit and Marginal Cost of Gardening
Hours Spent
Gardening
Marginal Benefit
(dollars)
Marginal Cost
(dollars)
1
$21
$3
2
18
6
3
15
9
4
12
12
5
9
15
6
6
18
7
3
21
a. Given the information above, what is Emmanuel's optimal amount of time spent gardening each week?
- 1 hour
- 4 hours
- 0 hours
- 7 hours
b. If Emmanuel were to spend 2 hours each week gardening:
- marginal cost would exceed marginal benefit by $12.
- marginal benefit would exceed marginal cost by $12.
- marginal benefit would equal marginal cost.
- marginal benefit would exceed marginal cost by $18.
c. If Emmanuel were to spend 6 hours each week gardening:
- marginal cost would exceed marginal benefit by $12.
- marginal benefit would exceed marginal cost by $18.
- marginal benefit would exceed marginal cost by $12.
- marginal benefit would equal marginal cost.
Emmanuel enjoys growing zucchini in his garden and then selling his produce at the local farmers' market. The table below shows his marginal benefit and marginal cost for each hour he spends in his garden per week. The figure below plots the marginal benefit and marginal cost points.
Emmanuel's Marginal Benefit and Marginal Cost of Gardening | ||
Hours Spent Gardening |
Marginal Benefit (dollars) |
Marginal Cost (dollars) |
1 | $21 | $3 |
2 | 18 | 6 |
3 | 15 | 9 |
4 | 12 | 12 |
5 | 9 | 15 |
6 | 6 | 18 |
7 | 3 | 21 |
a. Given the information above, what is Emmanuel's optimal amount of time spent gardening each week?
- 1 hour
- 4 hours
- 0 hours
- 7 hours
b. If Emmanuel were to spend 2 hours each week gardening:
- marginal cost would exceed marginal benefit by $12.
- marginal benefit would exceed marginal cost by $12.
- marginal benefit would equal marginal cost.
- marginal benefit would exceed marginal cost by $18.
c. If Emmanuel were to spend 6 hours each week gardening:
- marginal cost would exceed marginal benefit by $12.
- marginal benefit would exceed marginal cost by $18.
- marginal benefit would exceed marginal cost by $12.
- marginal benefit would equal marginal cost.
1
answer
0
watching
2,048
views
For unlimited access to Homework Help, a Homework+ subscription is required.
Kristelle BalandoLv10
29 Sep 2019
Related textbook solutions
Related questions
First scenario: output price is given | ||||||||
The table (below) gives the total output, per hour, for anywhere from 0 to 17 workers. | ||||||||
You need to determine how many workers should be hired at five different wage rates, ranging from $13/hour up to $25/hour. The wage rate includes all relevant benefits. To get to this answer you will need to calculate the marginal product of labor and the marginal revenue product of labor. You will be entering the values you obtain for the boldy outlined celles into the Moodle submission area. | ||||||||
Cost of the other (non-labor) inputs that go into a case (and would need to be increased if more labor was hired and output increased) = | $13.00 | |||||||
Price received per case = | $15.00 | |||||||
Marginal product of labor is the change in total product when labor is increased by one. | ||||||||
Marginal Revenue Product (net of the cost of the other required inputs), when the output price is fixed) equals marginal product times the ((fixed) output price -$13) | ||||||||
Please note: A few of the table values are filled in. Use these to determine if your approach to the problem is correct. | ||||||||
Number of workers | Total product | Marginal product of labor | Marginal Revenue Product (net of the cost of the other required inputs) | |||||
0 | 0 | |||||||
1 | 10 | 10 | ||||||
2 | 21 | 11 | $22.00 | |||||
3 | 33 | 12 | $24.00 | |||||
4 | 46 | 13 | $26.00 | |||||
5 | 60 | 14 | $27.00 | |||||
6 | 75 | 15 | $30.00 | |||||
7 | 91 | 16 | $32.00 | |||||
8 | 106 | 15 | $30.00 | |||||
9 | 120 | 14 | $28.00 | |||||
10 | 133 | 13 | $26.00 | |||||
11 | 145 | 12 | $24.00 | |||||
12 | 156 | 11 | $21.00 | |||||
13 | 165 | 9 | $18.00 | |||||
14 | 172 | 7 | $14.00 | |||||
15 | 177 | 5 | $10.00 | |||||
16 | 179 | 2 | $4.00 | |||||
17 | 179 | 0 | $0.00 | |||||
Using the information from above, fill in the following 'derived demand' schedule: | ||||||||
Hourly wage | Number of workers to maximize profits | |||||||
$13.00 | 15 | |||||||
$17.00 | 13 | |||||||
$21.00 | 12 | |||||||
$23.00 | 11 | |||||||
$25.00 | 10 | |||||||