Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits? Your response must include, for each level of output .the total revenue, marginal revenue, average cost, and marginal cost. Then draw your conclusion about the level of output and total the firm will earn in profits? Table of prices = $25,$24,$23,$22.50,$22,$21.60,$21.20 Quantity= 0,10,20,30,40,50,60 TC= $130,$275,$435,$610,$800,$1,005,$1,225
Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits? Your response must include, for each level of output .the total revenue, marginal revenue, average cost, and marginal cost. Then draw your conclusion about the level of output and total the firm will earn in profits? Table of
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