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5. Probiems and Damell owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $4 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by deriving Darnell's supply schedule. Price Quantity Supplied More than $9 $7 to $9 $4 to $7 $1 to $4 $1 or less

5. Probiems and Damell owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $4 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by deriving Darnell's supply schedule. Price Quantity Supplied More than $9 $7 to $9 $4 to $7 $1 to $4 $1 or less

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter3: Demand, Supply, And The Market Process
Section: Chapter Questions
Problem 10CQ
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TIS & APP Based on Darnell's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0), 10 Darnell's Supply Price = $5 Quantity Sold 3 Producer Surplus 1 21 Quantity of Water Suppose the price of a bottle of water is $5. Use the black line (plus symbol) to drawa price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Darnell will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Darnell's producer surplus. In this case, Darnell receives S in producer surplus from his water sales. If the price rises to $8, Darnell now sells bottles of water. This his producer surplus to S Price of Wat er 2.
Transcribed Image Text:TIS & APP Based on Darnell's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0), 10 Darnell's Supply Price = $5 Quantity Sold 3 Producer Surplus 1 21 Quantity of Water Suppose the price of a bottle of water is $5. Use the black line (plus symbol) to drawa price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Darnell will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Darnell's producer surplus. In this case, Darnell receives S in producer surplus from his water sales. If the price rises to $8, Darnell now sells bottles of water. This his producer surplus to S Price of Wat er 2.
5. Darnell owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more, Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $4 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by denving Darne/'s supply schedule. Price Quantity Supplied More than $9 $7 to $9 $4 to $7 $1 to $4 $1 or less
Transcribed Image Text:5. Darnell owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more, Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $4 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by denving Darne/'s supply schedule. Price Quantity Supplied More than $9 $7 to $9 $4 to $7 $1 to $4 $1 or less
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Producer surplus is the area below the supply curve and above seller's minimum willingness to accept 

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