The table given below represents the marginal valuation of a beekeeper (collecting honey) and an orchard farmer (producing mangoes).The beekeeper's opportunity cost reflects the loss in honey collection resulting from the usage of the same orchard again and again.

$\begin{array}{|c|c|c|c|c|c|}
\hline \text { Days used } & \begin{array}{c}
\text { Total honey } \
\text { value }(\$)
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { honey value } \
(\$)
\end{array} & \begin{array}{c}
\text { Beekeeper's } \
\text { opportunity cost } \
(\$)
\end{array} & \begin{array}{c}
\text { Total value } \
\text { of mangoes } \
\mathbf{( \$ )}
\end{array} & \begin{array}{c}
\text { Marginal value } \
\text { of mangoes (\$) }
\end{array} \
\hline 1 & 18 & 18 & 4 & 10 & 10 \
\hline 2 & 23 & 6 & 4 & 17 & 7 \
\hline 3 & 27 & 5 & 4 & 23 & 6 \
\hline 4 & 30 & 3 & 4 & 28 & 5 \
\hline 5 & 32 & 2 & 4 & 32 & 4 \
\hline 6 & 33 & 1 & 4 & 30 & 2 \
\hline 7 & 34 & 1 & 4 & 29 & 1 \
\hline
\end{array}$

-Refer to Table.What will be the maximum number of days for which the beekeeper would like to stay in the orchard without being compensated for his stay by the orchard owner?
A)1 day
B)6 days
C)3 days
D)4 days

Question

The table given below represents the marginal valuation of a beekeeper (collecting honey) and an orchard farmer (producing mangoes).The beekeeper's opportunity cost reflects the loss in honey collection resulting from the usage of the same orchard again and again.

$\begin{array}{|c|c|c|c|c|c|}
\hline \text { Days used } & \begin{array}{c}
\text { Total honey } \
\text { value }(\$)
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { honey value } \
(\$)
\end{array} & \begin{array}{c}
\text { Beekeeper's } \
\text { opportunity cost } \
(\$)
\end{array} & \begin{array}{c}
\text { Total value } \
\text { of mangoes } \
\mathbf{( \$ )}
\end{array} & \begin{array}{c}
\text { Marginal value } \
\text { of mangoes (\$) }
\end{array} \
\hline 1 & 18 & 18 & 4 & 10 & 10 \
\hline 2 & 23 & 6 & 4 & 17 & 7 \
\hline 3 & 27 & 5 & 4 & 23 & 6 \
\hline 4 & 30 & 3 & 4 & 28 & 5 \
\hline 5 & 32 & 2 & 4 & 32 & 4 \
\hline 6 & 33 & 1 & 4 & 30 & 2 \
\hline 7 & 34 & 1 & 4 & 29 & 1 \
\hline
\end{array}$

-Refer to Table.What will be the maximum number of days for which the beekeeper would like to stay in the orchard without being compensated for his stay by the orchard owner?
A)1 day
B)6 days
C)3 days
D)4 days

Quizplus · Accepted Answer

To find the maximum number of days for which the beekeeper would like to stay without being compensated for his stay, we need to look at the point where the beekeeper's marginal valuation equals his opportunity cost. 
From the table, we see that the beekeeper's opportunity cost is constant at $4 for all days. 
The beekeeper's marginal valuation decreases as the number of days increases, reaching $1 on day 6 and 7. 
Therefore, the beekeeper will stay for a maximum of 3 days (day 1, 2, and 3) as on day 4, the marginal valuation drops below the opportunity cost of $4, and it does not make sense for the beekeeper to stay longer since their benefit from additional honey collected is less than the opportunity cost.

The Table Given Below Represents the Marginal Valuation of a Beekeeper