Answered: 4.0 Ripple Rock marginal cost 3.5 The…

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 0.0 100 200 300 400 500 600 700 800 Quantity (thousands of pounds) Marginal cost ($ per pound)

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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Question

100%

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
100
200
300
400
500
600
700
800
Quantity (thousands of pounds)
Marginal cost ($ per pound)

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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