DISCUSSION QUESTIONS (S) . 2400- (S). (5) TR Make a rough sketch of the graph in your notes, and answer the following questions: 1. What sales interval would keep the company profitable? What do we call these values? 2. Superimpose the total profit (TP) curve over the TR and TC curves. What would the sales level have to be to 1800 TC 1200 600 20 40 60 80 100 obtain maximum profits? Estimate the slopes on the TR and TC curves at this level of sales. Should they be the Boxes Sold/Week same? Why or why not? 3. On a separate set of axes, sketch the marginal profit (the extra profit earned by selling one more box of dTP dx chocolates), MP = . What can you say about the %3D marginal profit as the level of sales progresses from just less than the maximum to the maximum, and then to just above the maximum? Does this make sense? Explain. TR, TC, TP, ($)
DISCUSSION QUESTIONS (S) . 2400- (S). (5) TR Make a rough sketch of the graph in your notes, and answer the following questions: 1. What sales interval would keep the company profitable? What do we call these values? 2. Superimpose the total profit (TP) curve over the TR and TC curves. What would the sales level have to be to 1800 TC 1200 600 20 40 60 80 100 obtain maximum profits? Estimate the slopes on the TR and TC curves at this level of sales. Should they be the Boxes Sold/Week same? Why or why not? 3. On a separate set of axes, sketch the marginal profit (the extra profit earned by selling one more box of dTP dx chocolates), MP = . What can you say about the %3D marginal profit as the level of sales progresses from just less than the maximum to the maximum, and then to just above the maximum? Does this make sense? Explain. TR, TC, TP, ($)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:DISCUSSION QUESTIONS
2400
($)
TR
Make a rough sketch of the graph in your notes, and
answer the following questions:
1. What sales interval would keep the company
profitable? What do we call these values?
2. Superimpose the total profit (TP) curve over the TR and
TC curves. What would the sales level have to be to
1800
TC
1200
R 600
20 40 60 80 100
obtain maximum profits? Estimate the slopes on the TR
and TC curves at this level of sales. Should they be the
same? Why or why not?
3. On a separate set of axes, sketch the marginal profit
(the extra profit earned by selling one more box of
Boxes Sold/Week
chocolates), MP =
dTP
What can you say about the
xp
marginal profit as the level of sales progresses from just
less than the maximum to the maximum, and then to
just above the maximum? Does this make sense?
Explain.
TR, TC, TP, ($)
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