(1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - Total cost. Your results are estimated as, values per day. %3D TR 200 420 660 920 4 1152 4 7 1360 4 8 1540 u 1680 4 10 1800 u AR MR Profit 4 200 220 240 2 60 232 208 180 140 120 40 AR-TR/Y and TR= PY/Y-P There tore AR =DP MR= TRn-TRn -220 -120 2. 3. s)4 140 252 340 400 420 420 i840 니 340 (2) Due to several factors, the tacos market has dramatically changed in this town. Now you are the only rolled tacos maker. You have a demand curve for your taco as Q = 305 – 20 * P, where Q is the quantity demanded for your tacos per day and P is the market price ($) of each your taco. The output decision maximizing your profit is now to make 165 tacos per day. Then, what is the market price of each rolled taco? What is the relationship between, MC, MR, P and AR? And how much is your total profit at this level of output? marketpreo 305-20xP
(1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - Total cost. Your results are estimated as, values per day. %3D TR 200 420 660 920 4 1152 4 7 1360 4 8 1540 u 1680 4 10 1800 u AR MR Profit 4 200 220 240 2 60 232 208 180 140 120 40 AR-TR/Y and TR= PY/Y-P There tore AR =DP MR= TRn-TRn -220 -120 2. 3. s)4 140 252 340 400 420 420 i840 니 340 (2) Due to several factors, the tacos market has dramatically changed in this town. Now you are the only rolled tacos maker. You have a demand curve for your taco as Q = 305 – 20 * P, where Q is the quantity demanded for your tacos per day and P is the market price ($) of each your taco. The output decision maximizing your profit is now to make 165 tacos per day. Then, what is the market price of each rolled taco? What is the relationship between, MC, MR, P and AR? And how much is your total profit at this level of output? marketpreo 305-20xP
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please help did first one but not sure of second part of question
Transcribed Image Text:(1) Suppose you are now operating your business in a town which has a very competitive taco
catering market. There are many restaurants and food caterers providing rolled tacos (flautas and
taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled
taco, to maximize your profit, how many tacos you should make per day? At this output level,
what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR),
total revenue (TR) and total profit? Note: Total profit = Total revenue - Total cost. Your results
are estimated as values per day.
TR
AR MP
Profit
200
9 20
220
AR- TR/Y and TR= PY/Y=P
There tore ARP
MR= TRn-TRnl
-220
-(20
420
660
920
-TC
Y{facos)
240
260
140
252
340
1152
1360
1540
1680
232
208
400
180
14c
1800
|840
420
420
340
10
i20
40
(2) Due to several factors, the tacos market has dramatically changed in this town. Now you are
the only rolled tacos maker. You have a demand curve for your taco as Q = 305– 20 * P, where
Q is the quantity demanded for your tacos per day and P is the market price ($)
The output decision maximizing your profit is now to make 165 tacos per day. Then, what is the
market price of each rolled taco? What is the relationship between, MC, MR, P and AR? And
each your taco.
antity
manetprito
= 305-20xP
Date
2019
10/2020
7.
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