Consider the total cost and total revenue given in the following table: Quant Total Total Prof Marginal Revenue Marginal Cost ity Cost Revenue it 8. 1 8. 10 16 11 24 13 32 19 40 6 27 48 7 37 56 1. Calculate profit for each quantity (write your answers in the column provided above). How much should the firm produce to maximize profit? 2. Calculate the marginal revenue and marginal cost for each quantity (write your answers in the columns provided above). Illustrate in a graph the marginal revenue and marginal cost below. Identify the profit maximizing quantity.

Consider the total cost and total revenue given in the following table: Quant Total Total Prof Marginal Revenue Marginal Cost ity Cost Revenue it 8. 1 8. 10 16 11 24 13 32 19 40 6 27 48 7 37 56 1. Calculate profit for each quantity (write your answers in the column provided above). How much should the firm produce to maximize profit? 2. Calculate the marginal revenue and marginal cost for each quantity (write your answers in the columns provided above). Illustrate in a graph the marginal revenue and marginal cost below. Identify the profit maximizing quantity.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.9CE: How many shuts do you recommend selling per color per day? What then is your recommended dollar...

See similar textbooks

Similar questions

The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 100 TOTAL REVENUE (Dollars) 90 80 20 10 0 1250 1125 1000 875 750 625 500 On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, or 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. 375 250 125 + 0 0 0 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) + 5 20 10 15 25 30 35 QUANTITY (Number of units) 40 Graph Input Tool Market for Goods 45 50 Quantity Demanded (Units)…
Help me
Audra runs a movie memorabilia website. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Audra could have made $35,000 working for a security company and received an additional $10,000 if she had used the company's inputs in a different way. Calculate Audra's economic profit.
Q.5 A firm is making two products A & B. Each unit of A incurs a cost of production to the tune of $150 and that of B incurs a cost of $200. Product A earns a profit of $15/unit and B gets $20/unit. The estimated monthly demand of both A & B is at maximum 500 units. Monthly production budget is set at $50,000.How many units of A & B should the firm make in order to maximize profit. Conduct sensitivity analysis and answer the following questions: 1. State the optimal solution. 2. What is the objective function value? 3. Find out the range of profit for A in the objective function for which the above solution remains optimal. 4. Which constraint/s is/are binding? 5. Interpret the shadow price for production budget.
If Amit's Curry House took in $35 000 in revenue last week and had out-of-pocket expenses of $31 500, which of the following best describes Amit's profits last week? Amit really did NOT make any profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm. Amit made an economic profit of $3500. It is NOT clear whether Amit earned any profit last week because it depends on the magnitude of the implicit costs. Amit did NOT earn an economic profit.
Price and cost (dollars) 50 40 .ATC 10 MC MR 10 Quantity (thousands of households) 20 30 40 50 The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community. If TWC operated under a marginal cost pricing rule, how many households in Oakland are served? 10,000 30,000 40,000 20,000 30 20
How many shuts do you recommend selling per color per day? What then is your recommended dollar markup and markup percentage? What dollar margin and percentage margin is that?
3. Johnny Rockabilly has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows: Price Number of CDs $24 10 000 22 20 000 20 20 30 000 18 40 000 16 50 000 14 60 000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Find total revenue for quantity equal to 10 000, 20 000, and so on. What is the marginal revenue for each 10 000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would be the price? What would be the profit? c. If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company? Why?
The following graph shows Crest's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. Use the black point (plus symbol) to indicate Crest's profit-maximizing output and price. (?) Price, Cost, Revenue Demand ATC O True MR Quantity of Crest Toothpaste True or False: Crest's profit is positive. + Profit Max
How do you calculate a firm's total cost and total revenue?
help me please
a donut shop charges customers the same price. the profit maximising output is 100 at a price of 5$ per donut. marginal cost is 2$. The donut shop owner now discovers that it has two very different types of customer children and adults . It can maximise its profits by selling 30 donuts to children for a price of 4$ per donut and 70 donuts per evening to everyone else for a price of 6$ per donut. Draw a diagram showing the profit-maximising price and output a) when all customers are charged the same price and b) when children are charged a different price c)How much profit does the donut shop owner make when children are charged a different price? explain how to draw the diagrams also in detail please!