4. Akbar Ali is the only person who sells a TV show cards. Below is the chart of his prices and number of cards sold. Price (in Pak Rupees) Quantity sold (in numbers) 10,000 20,000 30,000 24 22 20 18 40,000 50,000 16 14 60,000 Akbar Ali can produce the cards with no fixed cost and Rs.5/card variable cost. a). Find total revenue for each quantity stated in above table? b). Find marginal revenue for each quantity? c). What quantity of cards would maximize his profit?

4. Akbar Ali is the only person who sells a TV show cards. Below is the chart of his prices and number of cards sold. Price (in Pak Rupees) Quantity sold (in numbers) 10,000 20,000 30,000 24 22 20 18 40,000 50,000 16 14 60,000 Akbar Ali can produce the cards with no fixed cost and Rs.5/card variable cost. a). Find total revenue for each quantity stated in above table? b). Find marginal revenue for each quantity? c). What quantity of cards would maximize his profit?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter1A: Appendix: Working With Graphs

Section: Chapter Questions

Problem 1E

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Question

4. Akbar Ali is the only person who sells a TV show cards. Below is the chart of his prices and
number of cards sold.
Price (in Pak Rupees)
Quantity sold (in numbers)
10,000
24
22
20,000
20
30,000
18
40,000
50,000
16
14
60,000
Akbar Ali can produce the cards with no fixed cost and Rs.5/card variable cost.
a). Find total revenue for each quantity stated in above table?
b). Find marginal revenue for each quantity?
c). What quantity of cards would maximize his profit?
d). What would be the price and profit at the level of profit maximization?
e). If you are hired as Akber Ali's agent, what price would you suggest him to
charge (use logical reasoning for your answer)?

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