**Graph Explanation:**The graph represents the demand and cost situation for a MOOC psychology course. The vertical axis is labeled "Price and cost (dollars per student)" and ranges from $0 to $150. The horizontal axis is labeled "Quantity of students enrolled," ranging from 0 to 36,000.- **Curves:** - **D (Demand Curve):** Downward sloping, showing the relationship between price and quantity demanded. - **MR (Marginal Revenue Curve):** Lies below the demand curve and also slopes downward, indicating changes in revenue with each additional unit sold. - **MC (Marginal Cost Curve):** Horizontal, indicating a constant cost per student. - **ATC (Average Total Cost Curve):** Lies above the marginal cost curve, illustrating per-unit cost at different quantities of students.- **Data Points:** Various intersections are marked, showing the relationships between cost, revenue, and demand at different enrollment levels.**Text:**Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure.The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor?- A. $0- B. $40- C. $88- D. $150

The maximum number of students will enroll without incurring the economic when: ATC=D This implies…

Price and cost (dollars per student) $150 120 - ATC - MC MR 15,000 24,000 30,000 36,000 Quantity of students enrolled Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enrl." Which price should this faculty member favor? O A. $0 O B. $40 O C. $88 O D. $150 우

Price and cost (dollars per student) $150 120 - ATC - MC MR 15,000 24,000 30,000 36,000 Quantity of students enrolled Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enrl." Which price should this faculty member favor? O A. $0 O B. $40 O C. $88 O D. $150 우

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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