B. Problems and Applications Q3 Taylor Swift has just finished recording her latest album. The company can produce the CD with no fixed cost and a variable cost of $5 per CD. Her recording company determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold Total Revenue Marginal Revenue (Dollars) (Dollars) Price (Dollars) Number of CDs 10,000 24 22 20 18 20,000 30,000 40,000 50.000 AAAAA
B. Problems and Applications Q3 Taylor Swift has just finished recording her latest album. The company can produce the CD with no fixed cost and a variable cost of $5 per CD. Her recording company determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold Total Revenue Marginal Revenue (Dollars) (Dollars) Price (Dollars) Number of CDs 10,000 24 22 20 18 20,000 30,000 40,000 50.000 AAAAA
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:8. Problems and Applications Q3
Taylor Swift has just finished recording her latest album. The company can produce the CD with no fixed cost and a variable cost of $5 per CD. Her
recording company determines that the demand for the CD is as follows:
Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold
Price
Total Revenue Marginal Revenue
(Dollars)
(Dollars) Number of CDs
(Dollars)
24
10,000
22
20,000
20 30,000
18
40,000
16
50,000
14
60,000
Profit is maximized at a quantity of
AAAAA
CDS and a price of This results in a profit of s
If you were Swift's agent, you would advise her to demand a recording fee of
from the record company.
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