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Eric and Kyle are fishermen with different equipment and, as a result, different costs for catching fish. Eric's costs for catching fish ar $1,000 per ton for the first 5 tons and then $2,500 per ton for any additional tons. Kyle can harvest fish at a cost of $3,000 per ton f the first 15 tons and then $1,400 for any additional tons. Instructions: Enter your answers as a whole number. a. If society wants 30 tons of fish and for some reason will allow only one of the two fishers to do all the fishing, which one should society choose if it wants to minimize the cost of catching those 30 tons of fish? Kyle How much will the total cost of catching the fish be? $ 66,000 What will be the average cost per ton for the 30 tons? $ 2,200 O b. If society wants 30 tons of fish and wants them for the least cost regardless of who catches them, how much should Eric and Kyle each catch? Eric: tons Kyle: tons How much will the total cost of catching 30 tons be? 2$ What will be the average cost per ton for the 30 tons? Instructions: Round your answer to 2 decimal places. $

Eric and Kyle are fishermen with different equipment and, as a result, different costs for catching fish. Eric's costs for catching fish ar $1,000 per ton for the first 5 tons and then $2,500 per ton for any additional tons. Kyle can harvest fish at a cost of $3,000 per ton f the first 15 tons and then $1,400 for any additional tons. Instructions: Enter your answers as a whole number. a. If society wants 30 tons of fish and for some reason will allow only one of the two fishers to do all the fishing, which one should society choose if it wants to minimize the cost of catching those 30 tons of fish? Kyle How much will the total cost of catching the fish be? $ 66,000 What will be the average cost per ton for the 30 tons? $ 2,200 O b. If society wants 30 tons of fish and wants them for the least cost regardless of who catches them, how much should Eric and Kyle each catch? Eric: tons Kyle: tons How much will the total cost of catching 30 tons be? 2$ What will be the average cost per ton for the 30 tons? Instructions: Round your answer to 2 decimal places. $

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please help me with b, c, and d. Thanks!

Eric and Kyle are fishermen with different equipment and, as a result, different costs for catching fish. Eric's costs for catching fish are $1,000 per ton for the first 5 tons and then $2,500 per ton for any additional tons. Kyle can harvest fish at a cost of $3,000 per ton for the first 15 tons and then $1,400 for any additional tons. Instructions: Enter your answers as a whole number. a. If society wants 30 tons of fish and for some reason will allow only one of the two fishers to do all the fishing, which one should society choose if it wants to minimize the cost of catching those 30 tons of fish? Kyle How much will the total cost of catching the fish be? $ 66,000 What will be the average cost per ton for the 30 tons? $ 2,200 b. If society wants 30 tons of fish and wants them for the least cost regardless of who catches them, how much should Eric and Kyle each catch? Eric: x tons Кyle: * tons How much will the total cost of catching 30 tons be? 2$ What will be the average cost per ton for the 30 tons? Instructions: Round your answer to 2 decimal places. %24
Transcribed Image Text:Eric and Kyle are fishermen with different equipment and, as a result, different costs for catching fish. Eric's costs for catching fish are $1,000 per ton for the first 5 tons and then $2,500 per ton for any additional tons. Kyle can harvest fish at a cost of $3,000 per ton for the first 15 tons and then $1,400 for any additional tons. Instructions: Enter your answers as a whole number. a. If society wants 30 tons of fish and for some reason will allow only one of the two fishers to do all the fishing, which one should society choose if it wants to minimize the cost of catching those 30 tons of fish? Kyle How much will the total cost of catching the fish be? $ 66,000 What will be the average cost per ton for the 30 tons? $ 2,200 b. If society wants 30 tons of fish and wants them for the least cost regardless of who catches them, how much should Eric and Kyle each catch? Eric: x tons Кyle: * tons How much will the total cost of catching 30 tons be? 2$ What will be the average cost per ton for the 30 tons? Instructions: Round your answer to 2 decimal places. %24
c. Suppose that Eric and Kyle can both sell whatever amount of fish they catch for $3,000 per ton. Also suppose that Eric is initially given ITQS (individual transferable quotas) for 30 tons of fish, while Kyle is given ITQS for zero tons of fish. Suppose that Kyle is willing to pay Eric $550 per ton for as many tons of ITQS as Eric is willing to sell to Kyle. How much profit would Eric make if he used all the ITQS himself? $ What is the profit situation if Eric sold 25 tons' worth of his ITQS to Kyle while using the other 5 tons of ITQS to fish for himself? d. What price per ton can Kyle offer to pay Eric for his 25 tons of ITQS such that Eric will make exactly as much money from that deal (in which he sells 25 tons' worth of ITQS to Kyle while using the rest to fish for himself) as he would by using all 30 tons of ITQS for himself? * per ton of ITQS %24 %24 %24
Transcribed Image Text:c. Suppose that Eric and Kyle can both sell whatever amount of fish they catch for $3,000 per ton. Also suppose that Eric is initially given ITQS (individual transferable quotas) for 30 tons of fish, while Kyle is given ITQS for zero tons of fish. Suppose that Kyle is willing to pay Eric $550 per ton for as many tons of ITQS as Eric is willing to sell to Kyle. How much profit would Eric make if he used all the ITQS himself? $ What is the profit situation if Eric sold 25 tons' worth of his ITQS to Kyle while using the other 5 tons of ITQS to fish for himself? d. What price per ton can Kyle offer to pay Eric for his 25 tons of ITQS such that Eric will make exactly as much money from that deal (in which he sells 25 tons' worth of ITQS to Kyle while using the rest to fish for himself) as he would by using all 30 tons of ITQS for himself? * per ton of ITQS %24 %24 %24
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