Description The firm's demand is as follows: Price $18 16 15 14 13 12 10 Quantity 2 3 4 5 6 78 Total variable costs are: Quantity TVC 2 $15 3 21 4 27 5 32 6 37 44 52 78 8 Fixed costs are $15 at all quantities
Description The firm's demand is as follows: Price $18 16 15 14 13 12 10 Quantity 2 3 4 5 6 78 Total variable costs are: Quantity TVC 2 $15 3 21 4 27 5 32 6 37 44 52 78 8 Fixed costs are $15 at all quantities
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Description
The firm's demand is as
follows:
Price
$18
16
15
14 13 12 10
Quantity
2
3
4
5
6
7
8
Total variable costs are:
Quantity TVC
2
$15
3
4
5
6
7
8
Fixed costs are
$15
at all quantities
21
27
32
37
44
52

Transcribed Image Text:QUESTION 1
1. What is the Marginal Revenue at a quantity of 5?
QUESTION 2
2, What is the Marginal Cost at a quantity of 7?
QUESTION 3
3. Using the MR-MC rule, what is the profit maximizing quantity this firm should produce?
QUESTION 4
4. How much profit do they make at this quantity?
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