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Calculate Felix's marginal revenue and marginal cost for the first seven frying pans he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Plot quantity values between the integers. For example, if Felix's marginal cost of increasing production from one frying pan to two frying pans is z, then you would plot a point at (1.5, x). Points will snap to the quantities of output as well as the level of cost and revenue. 40 35 Marginal Revenue 30 Marginal Cost 15 10 1 5 8 QUANTITY (Frying pans) Felix's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he produces is ▼ than the price Felix receives for each frying pan he sells. The marginal cost of producing an additional frying pan which is (that is, one more frying pan than would maximize his profit) isS , which is than the price Felix receives for each frying pan he sells. Therefore, Felix's profit-maximizing quantity corresponds to the intersection of the v curves. Because Felix is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per frying pan) 유

Calculate Felix's marginal revenue and marginal cost for the first seven frying pans he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Plot quantity values between the integers. For example, if Felix's marginal cost of increasing production from one frying pan to two frying pans is z, then you would plot a point at (1.5, x). Points will snap to the quantities of output as well as the level of cost and revenue. 40 35 Marginal Revenue 30 Marginal Cost 15 10 1 5 8 QUANTITY (Frying pans) Felix's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he produces is ▼ than the price Felix receives for each frying pan he sells. The marginal cost of producing an additional frying pan which is (that is, one more frying pan than would maximize his profit) isS , which is than the price Felix receives for each frying pan he sells. Therefore, Felix's profit-maximizing quantity corresponds to the intersection of the v curves. Because Felix is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per frying pan) 유

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose Felix runs a small business that manufactures frying pans. Assume that the market for frying pans is a perfectly competitive market, and the market price is $20 per frying pan. The following graph shows Felix's total cost curve.

Calculate Felix's marginal revenue and marginal cost for the first seven frying pans he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Plot quantity values between the integers. For example, if Felix's marginal cost of increasing production from one frying pan to two frying pans is z, then you would plot a point at (1.5, x). Points will snap to the quantities of output as well as the level of cost and revenue. 40 35 Marginal Revenue 30 Marginal Cost 10 3 QUANTITY (Frying pans) 2 4 5 6 7 8 Felix's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he produces is , which is v than the price Felix receives for each frying pan he sells. The marginal cost of producing an additional frying pan (that is, one more frying pan than would maximize his profit) is s , which is v than the price Felix receives for each frying pan he sells. Therefore, Felix's profit-maximizing quantity corresponds to the intersection of the curves. Because Felix is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per frying pan)
Transcribed Image Text:Calculate Felix's marginal revenue and marginal cost for the first seven frying pans he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Plot quantity values between the integers. For example, if Felix's marginal cost of increasing production from one frying pan to two frying pans is z, then you would plot a point at (1.5, x). Points will snap to the quantities of output as well as the level of cost and revenue. 40 35 Marginal Revenue 30 Marginal Cost 10 3 QUANTITY (Frying pans) 2 4 5 6 7 8 Felix's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he produces is , which is v than the price Felix receives for each frying pan he sells. The marginal cost of producing an additional frying pan (that is, one more frying pan than would maximize his profit) is s , which is v than the price Felix receives for each frying pan he sells. Therefore, Felix's profit-maximizing quantity corresponds to the intersection of the curves. Because Felix is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per frying pan)
Suppose Felix runs a small business that manufactures frying pans. Assume that the market for frying pans is a perfectly competitive market, and the market price is $20 per frying pan. The following graph shows Felix's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven frying pans that Felix produces, including zero frying pans. Note: Points will snap to the quantities of output as well as level of profit and revenue. 200 175 Total Revenue 150 Total Cost 125 Profit 75 25 -25 2 3 5 7 8 QUANTITY (Frying pans) Calculate Felix's marginal revenue and marginal cost for the first seven frying pans he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Plot quantity values between the integers. For example, if Felix's marginal cost of increasing production from one frying pan to two frying pans is a, then you would plot a point at (1.5, x). Points will snap to the quantities of output as well as the level of cost and revenue. O TAL COST AND REVENUE (Dollars)
Transcribed Image Text:Suppose Felix runs a small business that manufactures frying pans. Assume that the market for frying pans is a perfectly competitive market, and the market price is $20 per frying pan. The following graph shows Felix's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven frying pans that Felix produces, including zero frying pans. Note: Points will snap to the quantities of output as well as level of profit and revenue. 200 175 Total Revenue 150 Total Cost 125 Profit 75 25 -25 2 3 5 7 8 QUANTITY (Frying pans) Calculate Felix's marginal revenue and marginal cost for the first seven frying pans he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Plot quantity values between the integers. For example, if Felix's marginal cost of increasing production from one frying pan to two frying pans is a, then you would plot a point at (1.5, x). Points will snap to the quantities of output as well as the level of cost and revenue. O TAL COST AND REVENUE (Dollars)
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