Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $2 Cost of second bottle: $4 Cost of third bottle: $6 Cost of fourth bottle: $8 From this information, complete the following table by deriving Yakov's supply schedule. Price Quantity Supplied More than $8 $6 to $8 $4 to $6 $2 to $4 $2 or less Based on willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0). Suppose the price of a bottle of water is $5. Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Yakov will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Yakov's producer surplus. In this case, Yakov receives in producer surplus from his water sales. If the price rises to $7, Yakov now sells bottles of water. This his producer surplus to
Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $2 Cost of second bottle: $4 Cost of third bottle: $6 Cost of fourth bottle: $8 From this information, complete the following table by deriving Yakov's supply schedule. Price Quantity Supplied More than $8 $6 to $8 $4 to $6 $2 to $4 $2 or less Based on willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0). Suppose the price of a bottle of water is $5. Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Yakov will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Yakov's producer surplus. In this case, Yakov receives in producer surplus from his water sales. If the price rises to $7, Yakov now sells bottles of water. This his producer surplus to
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water:
| Cost of first bottle: | $2 |
| Cost of second bottle: | $4 |
| Cost of third bottle: | $6 |
| Cost of fourth bottle: | $8 |
From this information, complete the following table by deriving Yakov's supply schedule.
|
|
Quantity Supplied
|
|---|---|
| More than $8 |
|
| $6 to $8 |
|
| $4 to $6 |
|
| $2 to $4 |
|
| $2 or less |
|
Based on willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0).
Suppose the price of a bottle of water is $5.
Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Yakov will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Yakov's producer surplus .
In this case, Yakov receives
in producer surplus from his water sales.
If the price rises to $7, Yakov now sells
bottles of water. This his producer surplus to
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education