Lefola Limited is the only manufacturer of product G_Easy in the Popa Land. It has provided documented levels of demand at certain selling prices for product G_Easy which are as follows: Price per unit 7 000 6 000 Demand Units 0 1 Total costs 3 000 5 000 87 5 000 2 4 000 3 3 000 4 2 000 5 1 000 6 8 000 12 000 17 000 23 000 30 000 Required: MGA40AT/POF117V – 2020 Instructional Teaching manual pack Using a tabular approach, calculate the marginal revenues and marginal costs for product G_Easy at the different levels of demand, and so determine the selling price at which Lefola Limited’s profits are maximized.

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Author:WINSTON, Wayne L.
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Lefola Limited is the only manufacturer of product G_Easy in the Popa Land. It has provided documented levels of demand at certain selling prices for product G_Easy which are as follows:
Price per unit 7 000
6 000
Demand Units 0
1
Total costs 3 000
5 000
87

5 000 2 4 000 3 3 000 4 2 000 5 1 000 6
8 000 12 000 17 000 23 000 30 000
Required:
MGA40AT/POF117V – 2020 Instructional Teaching manual pack
Using a tabular approach, calculate the marginal revenues and marginal costs for product G_Easy at the different levels of demand, and so determine the selling price at which Lefola Limited’s profits are maximized. 

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