Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following table describes the supply of mushrooms in a local market where from 1-8 mushroom hunters find mushrooms on public land and sell them
The following table describes the supply of mushrooms in a local market where from 1-8 mushroom hunters find mushrooms on public land and sell them at $20/kg. The opportunity cost of the mushroom hunters is valued at $15/hour
** If the mushroom hunters were all employed by a single company, how many would that company employ, given the company seeks to maximize its profit?
#mushroom hunters | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
#mushrooms collected (kg) | 10 | 18 | 25 | 30 | 34 | 37 | 39 | 40 |
Total revenue @$20/kg | 200 | 360 | 500 | 600 | 680 | 740 | 780 | 800 |
Total wages@$15/hour | 120 | 240 | 360 | 480 | 600 | 720 | 840 | 960 |
Total revenue -total wages | 80 | 120 | 140 | 120 | 80 | 20 | -60 | -160 |
(Total revenue -total wages)/person | 80 | 60 | 46.67 | 30 | 16 | 3.333 | -8.571 | -20 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started