A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught: Quantity of Fish Hours (in pounds) 0 hours 0 lb. 1 10 2 18 3 24 4 28 5 30 a. What is the marginal product of each hour spent fishing? b. Use these data to graph the fishermans production function. Explain its shape. c. The fisherman has a fixed cost of $10 (his pole). The opportunity cost of his time is $5 per hour. Graph the fishermans total-cost curve. Explain its shape.
Principles: Macroeconomics (ECON 102) Macroeconomics Role of Households Households purchase newly produced consumption goods and services from firms Provide resources or factor services (labor, land, or capital) for use in production by firms Engage in saving- i.e. Purchasing of financial assets (such as bank accounts and stocks) and paying off debts o Saving is considered a residual effect because it is what is done with a household’s money remaining after spending Households can be either savers or borrowers o Saving- Spending less money than the household makes o Borrowing- Spending more money than the household makes Macroeconomics Role of Firms Produce the economy’s total o