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 in a fictional forest, depending on the number of pickers.

a) Assuming that each mushroom sells for $1, graph the average and marginal revenue for society at each level of effort (number of pickers).

b) Given that the opportunity cost of each picker's time is $10 per hour, label the socially optimal number of pickers and the number of pickers that will enter if the forest is an open-access resource. Explain why the pickers will dissipate the economic rent.

blems for Review Mushrooms per Pickers Picker per Hour 70 60 3 50 4 40 30 bl A 6 20 ra SA SB SC SD SE Fish Stock 7 10 () An oth Function for Problem 1 a) Assuming that each mushroom sells & Figure function ery with annual growth for $1, graph the average and mar- ure 13.9. Indicate which ginal revenue for society at each level that she the fishery would of effort (number of pickers). and gro ong run if there were al catch of Catch b) Given that the opportunity cost of each on the ve tock of each of the picker's time is $10 per hour, label the invested socially optimal number of pickers and for an alter the number of pickers that will enter if the forest is an open-access resource. Explain why the pickers will dissipate simal ha the economic rent. 4