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Karim increase production from 4 to 5 fire engines because the O True O False dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in the same change in the production quantity and, thus, total revenue.

Karim increase production from 4 to 5 fire engines because the O True O False dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in the same change in the production quantity and, thus, total revenue.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please Help. Answer all questions including the fill in the graph question.

OLANITY F Beverl 2 G Karim increase production from 4 to 5 fire engines because the O True O False dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in the same change in the production quantity and, thus, total revenue.
Transcribed Image Text:OLANITY F Beverl 2 G Karim increase production from 4 to 5 fire engines because the O True O False dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $105,000 were the market price for an engine, decreasing its price from $105,000 to $90,000 would result in the same change in the production quantity and, thus, total revenue.
Attempts Keep the Highest/3 3. The components of marginal revenue Karim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Karim initially produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Karim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Karim must lower the price from $105,000 to $90,000 per truck. Notice that Karim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000.
Transcribed Image Text:Attempts Keep the Highest/3 3. The components of marginal revenue Karim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Karim initially produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Karim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Karim must lower the price from $105,000 to $90,000 per truck. Notice that Karim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000.
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