The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producingdifferent quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box.Instructions: Enter your answers as a whole numbera. Fill in the marginal revenue (MR) and average revenue (AR) columns.Quantity of GifBoxes51015202530Choco Lovers Cost and RevenueTC ($)MC ($)MR ($)554574624729212230 gift boxes10.501246444What will the new profit or loss be per gift box?AR ($)444Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers besure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number.b. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce?25 gift boxesWhat will the profit or loss be per gift box?per gift boxc. Suppose that Choco Lovers raises the price to $6 per gift box. Now how many boxes should Choco Lovers produce?444

The profit-maximizing condition for a perfectly competitive firm is given as follows:P = MC = MR

The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number. a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Quantity of Gift Boxes 5 10 800030 15 20 Choco Lovers Cost and Revenue TC ($) MC (S) MR ($) 4 4 25 55 57 62 72 92 122 1 0.50 1 2 4 6 4 4 4 4 AR ($) 4 4 4 4 4 4 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce? 25 gift boxes What will the profit or loss be per gift box? per gift box Suppose that Choco Lovers raises the price to $6 per gift box. Now how many boxes should Choco Lovers produce? 30 gift boxes What will the new profit or loss be per gift box?

The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number. a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Quantity of Gift Boxes 5 10 800030 15 20 Choco Lovers Cost and Revenue TC ($) MC (S) MR ($) 4 4 25 55 57 62 72 92 122 1 0.50 1 2 4 6 4 4 4 4 AR ($) 4 4 4 4 4 4 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce? 25 gift boxes What will the profit or loss be per gift box? per gift box Suppose that Choco Lovers raises the price to $6 per gift box. Now how many boxes should Choco Lovers produce? 30 gift boxes What will the new profit or loss be per gift box?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Ch 19 Economics
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