3. The components of marginal revenueNick's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Nick produced eight fire engines, but he has decidedto increase production to nine fire engines. The following graph shows the demand curve Nick faces. As you can see, to sell the additional engine, Nickmust lower his price from $80,000 to $40,000 per fire engine. Note that although Nick gains revenue from the additional engine he sells, he also losesrevenue from the initial eight engines because he sells them all at the lower price.Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 ratherthan $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at$40,000.PRICE (Thousands of dollars per fire engine)200180160140120100Nick0124Y5. 6QUANTITY (Fire engines)38Demand9 10Revenue LostRevenue Gainedincrease production from 8 to 9 fire engines, because revenue gained isthan revenue lost in this scenano. 200180PRICE (Thousands of dollars per fire engine)g1601401201006040Nick&001 23 4 5 67QUANTITY (Fire engines)O TrueO FalseDemand8 910Revenue LostRevenue Gainedincrease production from 8 to 9 fire engines, because revenue gained isthan revenue lost in this scenario..True or False: If Nick's Fire Engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from$80,000 to $40,000 would result in the same change in production quantity and, thus, total revenue.

Demand curve is a downward sloping curve showing inverse relationship between price and quantity…

200 180 PRICE (Thousands of dollars per fire engine) 160 140 120 100 80 60 40 20 Nick 0 2 Ofrue O False 3 4 5 6 7 QUANTITY (Fire engines) Demand 8 9 10 Revenue Lost Revenue Gained i increase production from 8 to 9 fire engines, because revenue gained is, than revenue lost in this scenario. True or False: If Nick's Fire Engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000 would result in the same change in production quantity and, thus, total revenue.

200 180 PRICE (Thousands of dollars per fire engine) 160 140 120 100 80 60 40 20 Nick 0 2 Ofrue O False 3 4 5 6 7 QUANTITY (Fire engines) Demand 8 9 10 Revenue Lost Revenue Gained i increase production from 8 to 9 fire engines, because revenue gained is, than revenue lost in this scenario. True or False: If Nick's Fire Engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000 would result in the same change in production quantity and, thus, total revenue.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

(? 100 90 80 70 60 50 40 АТС 30 20 AVC 10 MC O 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of pounds) COSTS (Dollars per pound)
I am a Solar panel company, that manufactures and distributes solar panels in the US market. Two years ago it had 5 competitors but the government stimulus in the industry has encouraged 7 new US competitors ti ebter the market. In these circumstances, my solar panel company's price for its output ......
Output 1 2 3 4 5 6 7 8 9 10 AFC $ 300 150 100 75 60 50 43 38 33 30 Multiple Choice AVC $ 100 75 production of 4 units. produce 6 units. shut down. 70 73 80 90 103 119 138 160 The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $80, the firm will produce 5 units. ATC $ 400 225 170 148 140 140 146 156 171 190 MC $100 50 60 80 110 140 180 230 290 360
I have answer of first three sub-parts so give me other sub parts answer
QUESTION 5 Price 10 97 8- 7+ 6 3 2 MC ATC AVC Pl P2 P3 P4 + + 1 2 3 1 S 6 7 N Quantity At the price level labeled "P2," what happens in the short-run (SR) and long-run (LR) O SR: This firm will have positive economic profit. LR: Firm(s) enter this market and price decreases. SR: This firm will have positive economic profit. LR: Firm(s) enter this market and price remains the same. SR: This firm will have zero economic profit. LR: Firm(s) enter this market and price decreases. SR: This firm will have zero economic profit. LR: Price remains the same. OSR: This firm will operate with negative profit. LR: Firm(s) exit this market and price remains the same. OSR: This firm will operate with negative profit. LR: Firm(s) exit this market and price rises. OSR: This firm will not operate (shutdown). LR: Firm(s) exit this market and price remains the same. OSR: This firm will not operate (shutdown). LR: Firm(s) exit this market and price rises.
Explain now
Only typed answer When the local electricity company charges a price of $20 per kilowatt they sell 1,000 units. If they raise the price by $1 they sell 800 units. What is the marginal revenue between $20 and $21? a) $21 b) $3,200 c) $200 d) $1
Only typed solution
At the marketplace $8 per bushel.....please answer
Please see the attached12
You are given this demand schedule for new boats. Which of the following demand curves accurately represents the demand schedule and has proper formatting? The demand schedule for new boats Price ($) Quantity Demanded $500 5500 $1000 5000 $1500 4500 $2000 3500 $2500 3000 $3000 2000 $3500 1000 $4000 150 O 3100 10 NEW 3000 1000 THE None of the demand curves accurately represent the data in the schedule 9000 1000 3000 2000 . 1000 New Boats 1000 4000 New Boats Demanded New Boats 200 6000 7000
250 225 Revenue Lost 200 175 150 Revenue Gained 125 Demand 100 75 50 25 3 4 7 8 9. 10 QUANTITY (Fire engines) Gilberto increase production from 7 to 8 fire engines because the dominates in this scenario. True or False: If Gilberto's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, decreasing its price from $100,000 to $50,000 would result in the same change in the production quantity and, thus, total revenue. O True O False acer Σ 2. 1. PRICE (Thousands of dollars per fire engine)