Big Top is the only circus in the nation. The graph shows its demand curve and marginal cost curve. Draw the marginal revenue curve Label it Draw a point at the firm's profit-maximizing output and price Draw a shape to show the consumer surplus Label it CS Draw a shape to show the producer surplus Label it PS Consumer surplus equals S and producer surplus equals s >>> Answer to 2 decimal places When the firm maximizes profit, the circus is OA. efficient marginal revenue equals marginal cost OB inefficient, marginal benefit exceeds marginal revenue OC. efficient, the marginal benefit from an additional ticket is greater than its marginal cost OD. inefficient, the marginal benefit from an additional ticket is greater than its marginal cost OE inefficient, marginal revenue equals marginal cost because 50- 45- 40- 35 30- 25 20 15- 104 Price and cost (dollars per ticket) D MC 54 0+ 0 100 200 300 400 500 600 700 800 900 Quantity (tickets per show) >>> Draw only the objects specified in the question o du Q

Big Top is the only circus in the nation. The graph shows its demand curve and marginal cost curve. Draw the marginal revenue curve Label it Draw a point at the firm's profit-maximizing output and price Draw a shape to show the consumer surplus Label it CS Draw a shape to show the producer surplus Label it PS Consumer surplus equals S and producer surplus equals s >>> Answer to 2 decimal places When the firm maximizes profit, the circus is OA. efficient marginal revenue equals marginal cost OB inefficient, marginal benefit exceeds marginal revenue OC. efficient, the marginal benefit from an additional ticket is greater than its marginal cost OD. inefficient, the marginal benefit from an additional ticket is greater than its marginal cost OE inefficient, marginal revenue equals marginal cost because 50- 45- 40- 35 30- 25 20 15- 104 Price and cost (dollars per ticket) D MC 54 0+ 0 100 200 300 400 500 600 700 800 900 Quantity (tickets per show) >>> Draw only the objects specified in the question o du Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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