a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 25 205 7 30 237 6.50 35 272 7 40 312 8 45 362 10 50 422 12
a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 25 205 7 30 237 6.50 35 272 7 40 312 8 45 362 10 50 422 12
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter8: Output, Price, And Profit: The Importance Of Marginal Analysis
Section: Chapter Questions
Problem 5TY
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Question
![The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different
quantities of chocolate gift boxes. The market price for a box of chocolates is $10 per box.
Instructions: Enter your answers as a whole number.
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
Choco Lovers Cost and Revenue
Quantity
TC
MC
MR
AR
of Gift Boxes
($)
($)
($)
($)
25
205
7
30
237
6.50
35
272
7
40
312
8
45
362
10
50
422
12
Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a
negative sign (-) in front of those numbers. A loss should be entered as a negative number.
b. Given a price of $10 per gift box, how many boxes of chocolate should Choco Lovers produce?
gift boxes
What will the profit or loss be per gift box?
$
per gift box
c. Suppose that Choco Lovers raises the price to $12 per gift box. Now how many boxes should Choco Lovers produce?
gift boxes
What will the new profit or loss be per gift box?
2$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F262e8cca-a0d8-415a-ba95-7ab2e379e77f%2F2133f23b-aafa-46fc-84f2-c79587a990ae%2Ftx41gia_processed.png&w=3840&q=75)
Transcribed Image Text:The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different
quantities of chocolate gift boxes. The market price for a box of chocolates is $10 per box.
Instructions: Enter your answers as a whole number.
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
Choco Lovers Cost and Revenue
Quantity
TC
MC
MR
AR
of Gift Boxes
($)
($)
($)
($)
25
205
7
30
237
6.50
35
272
7
40
312
8
45
362
10
50
422
12
Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a
negative sign (-) in front of those numbers. A loss should be entered as a negative number.
b. Given a price of $10 per gift box, how many boxes of chocolate should Choco Lovers produce?
gift boxes
What will the profit or loss be per gift box?
$
per gift box
c. Suppose that Choco Lovers raises the price to $12 per gift box. Now how many boxes should Choco Lovers produce?
gift boxes
What will the new profit or loss be per gift box?
2$
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