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##### Thomas Edison State ECO 112 Week 7 Assignment

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Question;ECO-112 Assignment 7;1.;In order to determine whether time is being spent optimally, a commercial;fisherman has recorded the following information over the past year;hours spent fishing" and "quantity of fish caught." What;is the marginal product of fishing for hour spent?;Hours/day;Total Quantityof Fish;(tons);MarginalProduct;0;0;1;10;2;18;3;24;4;28;5;30;6;31;2. The fisherman;(see question 1) has a fixed cost of \$200 per day and variable costs of \$150;per hour (wages and fuel).Fill in the;information missing in the following table.;Hours/;day;Total Fixed;Costs;Total Variable Costs;Total;Costs;Marginal;Costs;0;1;2;3;4;5;6;b.;The fish sell for \$100 a ton. How many hours fishing per day should he work in;order to earn a maximum profit on his day's activity?And how much is that profit? Please show all;your calculations.;3.;Explain the statement: "Fixed costs exist only in the short run. In the;long run there are no fixed costs." Why might the time frame for the;short run" differ from one industry to the next? Provide examples of;two industries with different time frames for the short run. Explain why this is;the case.;4.;At its current level of production, a profit-maximizing firm in a competitive;market receives \$12.50 for each unit it produces and faces an average total;cost of \$10. At the market price of \$12.50 per unit, the firm's marginal cost;curve crosses the marginal revenue curve at an output level of 1000 units. What;is the firm's current profit? What is likely to occur in this market and why?

Paper#56756 | Written in 18-Jul-2015

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