5.004.50Demand4.003.50Triangle3.002.502001.501000.504080100120140180180200Quantity of MinutesYour friend would obtain Sin consumer surplus with Provider A andin consumer surplus with Provider B.Given this information, which provider would you recommend that your friend choose?O Provider AO Provider BPrice of Minutes20 A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phonecalls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes ofcalling is given by the equation Qp = 150 - 50P, where P is the price of a minute.With Provider A, the cost of an extra minute isWith Provider B, the cost of an extra minute is SGiven your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk forminutes, and if he used Provider B, he would talk forminutes.This means your friend would pay Sfor service with Provider A and Sfor service with Provider B.Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow.Note: Yo U will not be graded on an. changeS Vou mako to tha喜G

In economics, demand is defined as the willingness and ability of customers to consume a particular…

Answered: 5.00 4.50 Demand 4.00 3.50 Triangle…

Business

Economics

5.00 4.50 Demand 4.00 3.50 Triangle 3.00 2.50 2.00 1.50 Price of Minutes

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. A-One bakery in Brampton sells 350 fruit cakes slices each month for $3.25 each. They are looking for help to come up with a strategy to increase revenue. A student from our school who works their part time conducts a survey. The results of the survey indicate that sales of the fruit cake slices would increase by 80 per month for each $0.10 decrease in price. c. Determine the marginal revenue from the sales of 200 slices of fruit cake. d. The cost of producing x fruit cake slices is C(x) = -0.0005x² + 1.5x + 300. Determine the marginal cost of producing 200 fruit cake slices.
8 7 2 Marginal revenue MC-AC (A) $920 (A) Seniors B) $580 Senior demand C) $300 D) $280 200 300 Number of meals 10 8 2 Figure 7.6 (B) Non-Seniors Marginal revenue Figure 7.6 shows prices, demands, and cost data for the only restaurant in a small town. Compared to the profit under the single price policy, how much additional profit does the restaurant earn under the senior discount policy of a $7 senior price and a $10 non-senior price? MC-AC Non-Senior demand 320 380 Number of meals
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Define the excess capacity and calculate it from a graph. Define a mark-up and calculate it from a graph.
6. A-One bakery in Brampton sells 350 fruit cakes slices each month for $3.25 each. They are looking for help to come up with a strategy to increase revenue. A student from our school who works their part time conducts a survey. The results of the survey indicate that sales of the fruit cake slices would increase by 80 per month for each $0.10 decrease in price. c. Determine the marginal revenue from the sales of 200 slices of fruit cake. d. The cost of producing x fruit cake slices is C(x) = -0.0005x² + 1.5x + 300. Determine the marginal cost of producing 200 fruit cake slices.
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