Marginal Cost and Marginal Revenue MR, MC, $/item 100 5아 50 100 150 q, items 200 -50- Label the graph, showing which curve is marginal revenue and which is marginal cost. What value of q will maximize revenue? What value of q will maximize profit? This company is currently producing 150 items. If they produce 2 additional items, estimate how th company's profit will change. Give a complete sentence expressing your answer.
Marginal Cost and Marginal Revenue MR, MC, $/item 100 5아 50 100 150 q, items 200 -50- Label the graph, showing which curve is marginal revenue and which is marginal cost. What value of q will maximize revenue? What value of q will maximize profit? This company is currently producing 150 items. If they produce 2 additional items, estimate how th company's profit will change. Give a complete sentence expressing your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. This graph shows a company's marginal cost and marginal revenue functions.
Marginal Cost and Marginal Revenue
MR, MC, $/item
100
50
50
100
150
q, items
| 200
-50
A. Label the graph, showing which curve is marginal revenue and which is marginal cost.
B. What value of q will maximize revenue?
c. What value of q will maximize profit?
D. This company is currently producing 150 items. If they produce 2 additional items, estimate how the
company's profit will change. Give a complete sentence expressing your answer.
E. Suppose that we know that this company's fixed costs are S2000. Sketch a graph of Revenue and Cost
functions that is consistent with the graphs above of MR and MC.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c02455b-a519-46a4-9f26-bbb395cc8222%2F72e4f887-eccd-4e1d-9f83-845c4afed5d0%2Fadhk4s9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. This graph shows a company's marginal cost and marginal revenue functions.
Marginal Cost and Marginal Revenue
MR, MC, $/item
100
50
50
100
150
q, items
| 200
-50
A. Label the graph, showing which curve is marginal revenue and which is marginal cost.
B. What value of q will maximize revenue?
c. What value of q will maximize profit?
D. This company is currently producing 150 items. If they produce 2 additional items, estimate how the
company's profit will change. Give a complete sentence expressing your answer.
E. Suppose that we know that this company's fixed costs are S2000. Sketch a graph of Revenue and Cost
functions that is consistent with the graphs above of MR and MC.
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