45 40 35 30 ATC MC 20 15 10 MR D 1 6. 7 Quantity 1. What is the profit-maximizing output and price? 2. What is the TR at the profit-maximizing price and quantity? 3. What is the profit or loss at the profit maximizing price and quantity? 4, 3. 2) 25 Price

45 40 35 30 ATC MC 20 15 10 MR D 1 6. 7 Quantity 1. What is the profit-maximizing output and price? 2. What is the TR at the profit-maximizing price and quantity? 3. What is the profit or loss at the profit maximizing price and quantity? 4, 3. 2) 25 Price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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45
40
35
30
ATC
MC
25
20
15
10
MR
D
1
3.
4.
Quantity
1. What is the profit-maximizing output and price?
2. What is the TR at the profit-maximizing price and quantity?
3. What is the profit or loss at the profit maximizing price and quantity?
Price
2.

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4-5 Draw the price effect and the quantity effect for a price change from $60 to $70. Which effect is larger? Does total revenue increase or decrease? No calculation is necessary.
c. Suppose that the demand for Molly's product increased by three units at every price level. Complete the table below. Total Revenue Marginal Cost Quantity per Period Price $30 30 29 28 27 26 25 24 22 20 $ Marginal Revenue $ $ Total Cost $ d. What will be her new profit-maximizing output and price, and what will be the amount of her profit? Output: Price: $ Profit: $
9 Sony is considering a 10 percent price reduction on its HD TV sets. If the price-elasticity coefficient for the sets in this price range is 0.75, then the price cut will cause Multiple Choice sales quantity to increase and revenues to also increase. seles quantity to increase but revenues to decrease. sales quantity to decrease and revenues to also decrease Seved sales quantity to decrease but revenues to increase
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Solve Question no. 1 . HAND WRITTEN SOLUTIONS ARE STRICTLY PROHIBITED
5
An exclusive yoghurt manufacture sellers 4000 gallons per month at a price of GHS 40 each. When the price is reduced to GHS 30 sales increase to 6000 gallons per month. 1.calculate the price elasticity of demand for the yoghurt over this Price range. 2.is the demand elastic or inelastic. 3.calculate the change in revenue due to the change in price
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