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The following graph shows the daily market for extra-large cardboard boxes in New York City. Fill in the price and the total, marginal, and average revenue Vesoro earns when it produces 0, 1, 2, or 3 boxes each day. Quantity (Boxes)  Price (Dollars per box) Total Revenue (Dollars) Marginal Revenue (Dollars) Average Revenue (Dollars per Box) 0   0     1         2         3

The following graph shows the daily market for extra-large cardboard boxes in New York City. Fill in the price and the total, marginal, and average revenue Vesoro earns when it produces 0, 1, 2, or 3 boxes each day. Quantity (Boxes)  Price (Dollars per box) Total Revenue (Dollars) Marginal Revenue (Dollars) Average Revenue (Dollars per Box) 0   0     1         2         3

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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The following graph shows the daily market for extra-large cardboard boxes in New York City.

Fill in the price and the total, marginal, and average revenue Vesoro earns when it produces 0, 1, 2, or 3 boxes each day.

Quantity (Boxes) 

Price (Dollars per box)

 Total Revenue (Dollars)

Marginal Revenue (Dollars)

 Average Revenue (Dollars per Box)
0   0    
1        
2        
3        
This graph demonstrates the supply and demand curves for extra-large boxes, illustrating the relationship between price and quantity. ### Axes: - **Horizontal Axis (X-axis):** "QUANTITY (Millions of extra-large boxes)" ranging from 0 to 10. - **Vertical Axis (Y-axis):** "PRICE (Dollars per extra-large box)" ranging from 0 to 50. ### Curves: - **Demand Curve:** The downward sloping line from the top left to the bottom right (blue line). It illustrates that as the price decreases, the quantity demanded increases. - **Supply Curve:** The upward sloping line from the bottom left to the top right (orange line). It shows that as the price increases, the quantity supplied also increases. ### Intersection: - The intersection of the supply and demand curves represents the equilibrium point, labeled as "5, 25." This indicates the equilibrium quantity is 5 million boxes at an equilibrium price of $25 per box. ### Dotted Lines: - **Horizontal Dotted Line:** Illustrates the equilibrium price ($25). - **Vertical Dotted Line:** Illustrates the equilibrium quantity (5 million boxes). The graph effectively communicates how market equilibrium is established where the quantity supplied equals the quantity demanded.
Transcribed Image Text:This graph demonstrates the supply and demand curves for extra-large boxes, illustrating the relationship between price and quantity. ### Axes: - **Horizontal Axis (X-axis):** "QUANTITY (Millions of extra-large boxes)" ranging from 0 to 10. - **Vertical Axis (Y-axis):** "PRICE (Dollars per extra-large box)" ranging from 0 to 50. ### Curves: - **Demand Curve:** The downward sloping line from the top left to the bottom right (blue line). It illustrates that as the price decreases, the quantity demanded increases. - **Supply Curve:** The upward sloping line from the bottom left to the top right (orange line). It shows that as the price increases, the quantity supplied also increases. ### Intersection: - The intersection of the supply and demand curves represents the equilibrium point, labeled as "5, 25." This indicates the equilibrium quantity is 5 million boxes at an equilibrium price of $25 per box. ### Dotted Lines: - **Horizontal Dotted Line:** Illustrates the equilibrium price ($25). - **Vertical Dotted Line:** Illustrates the equilibrium quantity (5 million boxes). The graph effectively communicates how market equilibrium is established where the quantity supplied equals the quantity demanded.
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