N Course: EC 201 Microeconom X MindTap - Cengage Learning X O ECN 221 Micro Final Flashcar x O ECN 221 Micro Final Flashcar X Success Confirmation of Que + ← C ✰ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=56960519240215212983351261543&elSBN=9781305648173&id=1488825767&snapshotld=2941604& Kathryn ✓ « CENGAGE MINDTAP My Home Critical Analysis Questions (Ch 10) Courses Catalog and Study Tools Rod N. Reel owns a dealership that sells fishing boats in an open price-searcher market. To develop his pricing strategy, Rod hired an economist to estimate his demand curve. The first two columns of the chart provide the data for the expected weekly quantity demanded for Rod's fishing boats at alternative prices. Rod's marginal (and average) cost of supplying each boat is constant at $5,000 per boat, no matter how many boats he sells per week in this range. This cost includes all opportunity costs and represents the economic cost per boat. Rental Options College Success Tips Career Success Tips RECOMMENDED FOR YOU Complete the following table by finding the total revenue and total cost per week at each quantity, the marginal revenue and marginal cost from the sale of each additional boat, and the economic profit per week at each quantity. Fishing Boats Sold Total Revenue Marginal Revenue Marginal Cost Economic Profit Total Cost Price of Fishing Boats (Boats per Week) ($ per Week) ($ per week) ($ per week) ($ per Week) ($ per Week) $9,000 0 $ $8,000 1 $ $ $5,000 $5,000 $ $ $7,000 2 $ $ $ $5,000 $6,000 3 $ $ $ $ $5,000 $5,000 4 $ $ $ $ $5,000 $4,000 5 $ $ $ per boat. At this price, Rod will sell boats per week at the If Rod wants to maximize his profits, he should charge a price of profit-maximizing price. 8: 48°F Clear 8 (2 Study Tools Study Tools for Principles of Economics ? Help Give Feedback I Type here to search C $ $0 $0 Q Search this course ● X $0 2:33 PM (1) 6/14/2022 к X : ? A-Z ((( bongo · N Course: EC 201 Microeconom X MindTap - Cengage Learning X Q ECN 221 Micro Final Flashcar X O ECN 221 Micro Final Flashcar X Success Confirmation of Que x + ← C ✰ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=56960519240215212983351261543&elSBN=9781305648173&id=1488825767&snapshotld=2941604& Kathryn ✓ « CENGAGE MINDTAP My Home Critical Analysis Questions (Ch 10) Courses At this price and sales volume, Rod's profits per week will be $ Catalog and Study Tools True or False: At the price and sales level where profits are maximized, Rod has sold all boats that have higher marginal revenue than marginal cost. Rental Options O True College Success Tips O False Career Success Tips Rod's profits are typical of all firms in the boat sales business. RECOMMENDED FOR YOU These profits will induce firms to the industry until economic profits are eliminated. Recall the relationship between elasticity of demand, price changes, and their impact on total revenues. Thus, demand is over this range of As Rod lowers his price from $9,000 to $5,000 his total revenues keep prices. When Rod lowers his price from $5,000 to $4,000, his total revenue prices. 8 (2 Study Tools Study Tools for Principles of Economics ? Help Give Feedback I Type here to search C Thus, demand is Grade It Now Q Search this course ● X between these two Save & Continue Continue without saving 48°F Clear 4) 2:33 PM 6/14/2022 к X : ? A-Z ((( bongo ·