first part options: 300,100,400,200second part options: negative, at its maximum, equal to 0, at its minimum, positive This problem gives you a preview of something you might see in a microeconomics class. Suppose there's an appliance store that sells airconditioners. It could set its price high and sell very few air conditioners, or it could set its price low and sell many more air conditioners. The followingtable shows some possible choices this store could make:ABсDEPrice(Dollars per air conditioner)7205403601809081NTOTAL REVENUE (Thousands of dollars per year)The graph below plots the firm's total revenue curve: that is, the relationship between quantity and total revenue given by the two right columns inthe table above. The five choices are also labeled. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D.453627∞0AA500BQuantity(Air conditioners per year)сAD0100200300400100150200 250300QUANTITY (Air conditioners per year)350EៗTotal Revenue (P x Q)(Dollars per year)054,00072,00054,0000400 Using the information on the slope of the lines tangent to the curve at points B and D, plot the slope of the total revenue curve on the graph below.(As it turns out, it's a straight line, so the two points you plot will determine a line.)REVENUE (Dollars per air conditioner)450360270180900-90-180-270-360-45050100150200250 300 350QUANTITY (Air conditioners per year)→400The total revenue curve reaches its maximum at a quantity ofisSlope of TR?air conditioners per year. At this point, the slope of the total revenue curve

Total revenue is price times quantity. Marginal revenue is the slope of total revenue. It measures…

This problem gives you a preview of something you might see in a microeconomics class. Suppose there's an appliance store that sells air conditioners. It could set its price high and sell very few air conditioners, or it could set its price low and sell many more air conditioners. The following table shows some possible choices this store could make: A B Price (Dollars per air conditioner) 720 540 Quantity (Air conditioners per year) 0 100 Total Revenue (P x Q) (Dollars per year) 0 54,000

This problem gives you a preview of something you might see in a microeconomics class. Suppose there's an appliance store that sells air conditioners. It could set its price high and sell very few air conditioners, or it could set its price low and sell many more air conditioners. The following table shows some possible choices this store could make: A B Price (Dollars per air conditioner) 720 540 Quantity (Air conditioners per year) 0 100 Total Revenue (P x Q) (Dollars per year) 0 54,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

first part options: 300,100,400,200

second part options: negative, at its maximum, equal to 0, at its minimum, positive

This problem gives you a preview of something you might see in a microeconomics class. Suppose there's an appliance store that sells air
conditioners. It could set its price high and sell very few air conditioners, or it could set its price low and sell many more air conditioners. The following
table shows some possible choices this store could make:
A
B
с
D
E
Price
(Dollars per air conditioner)
720
540
360
180
90
81
N
TOTAL REVENUE (Thousands of dollars per year)
The graph below plots the firm's total revenue curve: that is, the relationship between quantity and total revenue given by the two right columns in
the table above. The five choices are also labeled. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D.
45
36
27
∞
0
A
A
50
0
B
Quantity
(Air conditioners per year)
с
AD
0
100
200
300
400
100
150
200 250
300
QUANTITY (Air conditioners per year)
350
E
ៗ
Total Revenue (P x Q)
(Dollars per year)
0
54,000
72,000
54,000
0
400

Using the information on the slope of the lines tangent to the curve at points B and D, plot the slope of the total revenue curve on the graph below.
(As it turns out, it's a straight line, so the two points you plot will determine a line.)
REVENUE (Dollars per air conditioner)
450
360
270
180
90
0
-90
-180
-270
-360
-450
50
100
150
200
250 300 350
QUANTITY (Air conditioners per year)
→
400
The total revenue curve reaches its maximum at a quantity of
is
Slope of TR
?
air conditioners per year. At this point, the slope of the total revenue curve

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