Revenue and Costs On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from I unit to 2 units is $5, then you would plot a point at (1.5, 5).) 0 1 2 3. 4 5 6 Quantity The marginal-revenue curve and the marginal-cost curve cross at a quantity, Marginal Revenue -D- Marginal Cost This firm in a competitive industry, because marginal revenue is as quantity increases. The industry in a long-run equilibrium. Consider total cost and total revenue, given in the following table: Marginal Cost Total Revenue. Quantity (Dollars) (Dollars) In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Total Cost (Dollars) Marginal Revenue (Dollars) Profit (Dollars) 0 6 0 1 8 7 2 10 14 13 21 17 28 24 35 32 42 7 42 49 In order to maximize profit, how many units should the firm produce? Check all that apply. 3
Revenue and Costs On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from I unit to 2 units is $5, then you would plot a point at (1.5, 5).) 0 1 2 3. 4 5 6 Quantity The marginal-revenue curve and the marginal-cost curve cross at a quantity, Marginal Revenue -D- Marginal Cost This firm in a competitive industry, because marginal revenue is as quantity increases. The industry in a long-run equilibrium. Consider total cost and total revenue, given in the following table: Marginal Cost Total Revenue. Quantity (Dollars) (Dollars) In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Total Cost (Dollars) Marginal Revenue (Dollars) Profit (Dollars) 0 6 0 1 8 7 2 10 14 13 21 17 28 24 35 32 42 7 42 49 In order to maximize profit, how many units should the firm produce? Check all that apply. 3
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 5E
Related questions
Question
not use ai please
Transcribed Image Text:Revenue and Costs
On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to
plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing
production from I unit to 2 units is $5, then you would plot a point at (1.5, 5).)
0
1
2
3.
4
5
6
Quantity
The marginal-revenue curve and the marginal-cost curve cross at a quantity,
Marginal Revenue
-D-
Marginal Cost
This firm
in a competitive industry, because marginal revenue is
as quantity increases.
The industry
in a long-run equilibrium.
Transcribed Image Text:Consider total cost and total revenue, given in the following table:
Marginal Cost Total Revenue.
Quantity
(Dollars)
(Dollars)
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost
(Dollars)
Marginal Revenue
(Dollars)
Profit
(Dollars)
0
6
0
1
8
7
2
10
14
13
21
17
28
24
35
32
42
7
42
49
In order to maximize profit, how many units should the firm produce? Check all that apply.
3
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