Problem -
Our great friend, Timmy, has an orchard on his land which he alone can harvest. He also has his pulp fiction writing gig that pays him $.40 a word, but with his new computer, he can now pump out 300 words an hour! Harvesting apples, on the other hand, can be a drag and it gives him some loss in utility. Moreover, any apples he harvests after the 4th hour necessarily requires him to go further up the trees to get the fruit, which requires a special ladder which he rents from the local fruit-picker supply store (doesn't every town have one?) for $12 per hour.
Given the information in the table, find Timmy's reservation prices. Show your work and record your answer in the table.
|
Number of Hours Worked
|
Total of Bushels of Apples Harvested
|
Total Utility Loss
|
|
1
|
25
|
5
|
|
2
|
45
|
11
|
|
3
|
61
|
19
|
|
4
|
75
|
32
|
|
5
|
88
|
56
|
|
6
|
98
|
94
|
|
7
|
105
|
144
|
|
8
|
110
|
198
|
Be careful with this one. You are, essentially, mapping out Timmy's supply curve.