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Gordon's model can be applied to another type of renewable resource, wild mushrooms: Wild morel mushrooms are a delicacy in soups and salads. The following
Gordon's model can be applied to another type of renewable resource, wild mushrooms: Wild morel mushrooms are a delicacy in soups and salads. The following table shows the number of mushrooms that can be harvested per picker per hour, depending on the number of pickers. Assume that each mushroom sells for $1 and that the opportunity cost of each picker's time is $10 per hour. a Fill out the table below and determine the socially optimal number of pickers and the actual number of pickers that will enter the forest Total Revenue Marginal revenue Numbers of pickers 1 2 3 4 5 6 Mushrooms per picker per hour (Average revenue) 70 60 50 40 30 20 10
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