Question 9 - Ripple Rock Fish Farms, a small family fish farm in

Ohio, and The Fishing Company, a large corporate supplier, are both producers of tilapia. The marginal cost is 2.25 per pound.

1. If the market price is $2.25 pound of tilapia, how many pounds of tilapia would Ripple

Rock supply?

1. What about The Fishing Company?
2. How many total pounds would they collectively supply?
3. Is this allocation the most productively efficient way to produce this quantity of tilapia?

Question 10

Janet and her friend Olivia are both volunteers at a cat rescue. The shelter supervisor asks the two of them to clean out kennels and haul bags of cat food from the donation area to storage. Janet knows from her last time volunteering that she can clean out 10 kennels in an hour or move 5 bags of cat food. Olivia can clean out 6 kennels in an hour or move 6 bags of cat food. Olivia suggests that Janet split the tasks equally.

1. Who has an absolute advantage in doing each task?
2. What are Olivia's opportunity costs of doing each task?

c. What are Janet opportunity costs of doing each task?

d. Who has a comparative advantage in doing each task?

e. Who should do each task to minimize the amount of time they both spend?

g. Was Olivia's suggestion the best possible way to allocate Janet time?

Question 11

Suppose that it takes John two hours to complete his economics homework and four hours to complete his philosophy homework.

What is John opportunity cost of completing his economics homework.?

Question 12

Suppose that it takes Pat 15 minutes to shampoo hair and 60 minutes to cut hair. Suppose that it takes Alex 10 minutes to shampoo hair and 50 minutes to cut hair.

Who cuts the hair?

Question 13

In 2016, the United States was importing approximately 8 million barrels of crude oil per day at an average price of $43 per barrel. The domestic demand and supply of crude oil in the United States is $50 per barrel.

How many barrels for items 1-5 per day (without trade and with trade)?

	Without trade	With trade
1.Quantity supplied domestically
2. Quantity demanded domestically
3. Quantity imported
4.Area of consumer surplus
5.Area of producer surplus