Answered: 4.0 Ripple Rock marginal cost 3.5 The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The Fishin’ Company, a large corporate supplier, are both producers of tilapia. The marginal cost curves for both firms are shown in the accompanying graph.

a. Suppose the market price of tilapia is $2.50 per pound. Move point A to Ripple Rock’s quantity sold. Move point B to The Fishin’ Company’s quantity sold.

b. How many pounds of tilapia do they collectively supply?________thousand pounds

c. To achieve efficient production, The Fishin’ Company should supply _____ ("more", or "less", or "the same") it is currently producing, and Ripple Rock should supply __________ ("more", or "less", or "the same") it is currently producing.

4.0
Ripple Rock marginal cost
3.5
The Fishin' Company's marginal cost
3.0
2.5
2.0
1.5
A.
1.0
0.5
0.0
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Quantity (thousands of pounds)
Marginal cost ($ per pound)

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