### Market Equilibrium and Revenue Calculation for Zoomba Truck Rentals---#### Market Supply and DemandSuppose that Zoomba Inc. is one of several competitive firms in the Albion area that offers moving truck rentals. Below is a graphical representation of the weekly market demand and supply curves for small truck rentals, with the price Zoomba must take depicted.![Graph of Supply and Demand](#) **Graph Explanation**:- **Price (Dollars per small truck)** is on the vertical axis ranging from 0 to 10 dollars.- **Quantity (Hundreds of small trucks)** is on the horizontal axis ranging from 0 to 300 trucks.- The **Demand** curve is downward sloping, indicating that higher prices lead to lower demand.- The **Supply** curve is upward sloping, indicating that higher prices incentivize suppliers to provide more trucks.- The **equilibrium** point where the supply and demand curves intersect shows the market equilibrium price and quantity. ---#### Revenue Calculation TableZoomba must determine the price for renting these trucks. Based on the graph, input the market equilibrium data and calculate Zoomba's revenue metrics for renting 0, 1, 2, or 3 trucks during move-in week:| Quantity (Trucks) | Price (Dollars per truck) | Total Revenue (Dollars) | Marginal Revenue (Dollars) | Average Revenue (Dollars per truck) ||-------------------|---------------------------|-------------------------|----------------------------|-------------------------------------|| 0 | | | | || 1 | | | | || 2 | | | | || 3 | | | | |---#### Demand and Other CurvesThe demand curve faced by Zoomba is identical to which of its other curves? Check all that apply.- [ ] Average revenue curve- [ ] Supply curve- [ ] Marginal cost curve- [ ] Marginal revenue curve---

A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is Suppose that Zoomba is one of over a dozen competitive firms in the Eugene area that offers moving truck rentals. 0 1 2 3 PRICE (Dollars per small truck) 8 8 8 a 8 8 + X Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue (Dollars per truck) (Dollars) (Dollars) (Trucks) QUANTITY (Hundreds of small trucks) Supply curve Average revenue curve Marginal cost curve 2 3 4 5 6 7 8 9 10 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply. O Marginal revenue curve 0 Average Revenue (Dollars per truck)

Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is Suppose that Zoomba is one of over a dozen competitive firms in the Eugene area that offers moving truck rentals. 0 1 2 3 PRICE (Dollars per small truck) 8 8 8 a 8 8 + X Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue (Dollars per truck) (Dollars) (Dollars) (Trucks) QUANTITY (Hundreds of small trucks) Supply curve Average revenue curve Marginal cost curve 2 3 4 5 6 7 8 9 10 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply. O Marginal revenue curve 0 Average Revenue (Dollars per truck)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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