11. Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are equal in quality, but grow at different heights on the tree. Sam, being fearful of heights, demands greater compensation the higher he goes: So for him, the cost of grabbing an apple rises higher and higher, the higher he must climb, as shown in the Total Cost column in the accompanying table. The market price of an apple is $0.50. Complete the table on a separate piece of paper or in a spreadsheet. Apples 1 Marginal Cost $0.10 Marginal Revenue $0.50 Change in Profit $0.40 Total Cost $0.10 $0.22 $0.50 2 A C 3 E F $1.00 G H $1.73 $2.78 K L M b. Sam would first pick apples that are a. Sam's marginal revenue for selling apples is $ c. The data suggest that the marginal cost of apples is

11. Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are equal in quality, but grow at different heights on the tree. Sam, being fearful of heights, demands greater compensation the higher he goes: So for him, the cost of grabbing an apple rises higher and higher, the higher he must climb, as shown in the Total Cost column in the accompanying table. The market price of an apple is $0.50. Complete the table on a separate piece of paper or in a spreadsheet. Apples 1 Marginal Cost $0.10 Marginal Revenue $0.50 Change in Profit $0.40 Total Cost $0.10 $0.22 $0.50 2 A C 3 E F $1.00 G H $1.73 $2.78 K L M b. Sam would first pick apples that are a. Sam's marginal revenue for selling apples is $ c. The data suggest that the marginal cost of apples is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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