Sarah is trying to decide how to divide her time between her job as a wedding photographer, which pays $27 per hour for as many as she chooses to work, and as a fossil collector, in which her pay depends on both the price of fossils and the number of fossils she finds.a) Why does she require an increasing price per hour of fossil collection, but a flat price for photography? **Table: Fossil Collection Data**The table below showcases the relationship between the hours spent per day collecting fossils and the total number of fossils collected in that period.| Hours per day | Total fossils per day ||---------------|-----------------------|| 1 | 5 || 2 | 9 || 3 | 12 || 4 | 14 || 5 | 15 |**Analysis:**- As the number of hours dedicated to fossil collection increases, the total number of fossils collected generally increases.- This data can be used to understand how dedicating more time can impact the fossil collection rate, though the rate of increase appears to diminish with additional hours.

Diminishing marginal returns refers to the decrease in the incremental output or benefit derived…

Answered: Sarah is trying to decide how to divide…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Sarah is trying to decide how to divide her time between her job as a wedding photographer, which pays $27 per hour for as many as she chooses to work, and as a fossil collector, in which her pay depends on both the price of fossils and the number of fossils she finds.

a) Why does she require an increasing price per hour of fossil collection, but a flat price for photography?

**Table: Fossil Collection Data**

The table below showcases the relationship between the hours spent per day collecting fossils and the total number of fossils collected in that period.

| Hours per day | Total fossils per day |
|---------------|-----------------------|
| 1 | 5 |
| 2 | 9 |
| 3 | 12 |
| 4 | 14 |
| 5 | 15 |

**Analysis:**

- As the number of hours dedicated to fossil collection increases, the total number of fossils collected generally increases.
- This data can be used to understand how dedicating more time can impact the fossil collection rate, though the rate of increase appears to diminish with additional hours.

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