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Marginal cost schedule

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    Assignment Help >> Business Economics

    Question

    Suppose a fish farm has the following marginal cost schedule:

    Baskets per hour

    Marginal Cost Total Cost

    1 $5 $15

    2 $7 $22

    3 $9 $31

    4 $13 $44

    5 $17 $61

    6 $25 $86

    7 $32 $118

    (a) How many baskets of fish should be harvested at market prices of

    i. $7

    ii. $13

    iii. $25

    (b) How much profit does the farmer make at each of these prices in (a)?

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