3. The table below gives the total costs and total revenue schedule for a firm with the ability to set prices. Quantity Total Revenue Total Costs 0 $0 $55.00 1 $87.50 $112.00 2 $150.00 $151.00 3 $187.50 $179.00 4 $200.00 $206.00 5 $187.50 $261.00 6 $150.00 $361.00 7 $87.50 $575.00 (a) Calculate and graph marginal revenue, marginal cost, and the demand curve. (b) Determine the profit-maximizing price and quantity, and calculate the resulting profit. (Assume that the firm can only produce whole (not fractional) units.) (c) Label the elastic, inelastic, and unit elastic regions of the demand curve.

3. The table below gives the total costs and total revenue schedule for a firm with the ability to set prices. Quantity Total Revenue Total Costs 0 $0 $55.00 1 $87.50 $112.00 2 $150.00 $151.00 3 $187.50 $179.00 4 $200.00 $206.00 5 $187.50 $261.00 6 $150.00 $361.00 7 $87.50 $575.00 (a) Calculate and graph marginal revenue, marginal cost, and the demand curve. (b) Determine the profit-maximizing price and quantity, and calculate the resulting profit. (Assume that the firm can only produce whole (not fractional) units.) (c) Label the elastic, inelastic, and unit elastic regions of the demand curve.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 3E

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