Price100MRD1 23456Quantity (thousands of books per year)Bob's Books is the only bookstore in town. Thefigure above shows the demand curve forbooks and Bob's Books' marginal revenuecurve and marginal cost curve. Bob's Booksmaximizes its profit and sets the price of abook equal toand has total annualrevenue ofSelect one:O a. $20, $60,000O b.$40; $40,000O c.$10; $40,000O d. $30; $60,000 Price and costs (dollars per book)504030201001MRMCD23456Quantity (thousands of books per year)Bob's Books is the only bookstore in town. Thefigure above shows the demand curve forbooks and Bob's Books' marginal revenuecurve and marginal cost curve. Bob's Booksmaximizes its profit and sets the price of abook equal torevenue ofand has total annual

Annual revenue is the total amount of money an firm makes during a given year time span from the…

10 0 MR D 1 2 3 4 5 6 Quantity (thousands of books per year) Bob's Books is the only bookstore in town. The figure above shows the demand curve for books and Bob's Books' marginal revenue curve and marginal cost curve. Bob's Books maximizes its profit and sets the price of a book equal to and has total annual revenue of Select one: O a. $20, $60,000 O b. $40; $40,000 O c. $10; $40,000 O d. $30; $60,000

10 0 MR D 1 2 3 4 5 6 Quantity (thousands of books per year) Bob's Books is the only bookstore in town. The figure above shows the demand curve for books and Bob's Books' marginal revenue curve and marginal cost curve. Bob's Books maximizes its profit and sets the price of a book equal to and has total annual revenue of Select one: O a. $20, $60,000 O b. $40; $40,000 O c. $10; $40,000 O d. $30; $60,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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$6.40 5.50 4.70 4.00 2.50 A C E G 012 3 O $5.50. O $6.00. O $16.00. D O $22.00. MC ATC 6 The total profit at the profit-maximizing rate of output is MR Demand 7 S k
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Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.
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2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Market for Goods Quantity Demanded (Units) Demand Price (Dollars per unit) On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, and 40 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 8 versus 7…
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