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Trying to figure out (iii )?

Trying to figure out (iii )?

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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Trying to figure out (iii )?

### Understanding the Demand for Snow Skiing Lessons per Day In this exercise, we aim to complete the table by filling in the values for Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR) for skiing lessons per day. Let's analyze the given information and learn how to calculate these values. Here's the table with given and missing values: #### Table: Demand for Snow Skiing Lessons | Lessons per Day (Q) | Price (P) | Total Revenue (TR = P × Q) | Average Revenue (AR = TR/Q) | Marginal Revenue (MR = Δ TR/Δ Q) | |---------------------|-----------|----------------------------|-----------------------------|-----------------------------------| | 0 | $70 | $0 | - | - | | 1 | $65 | $65 | $65 | $65 | | 2 | $60 | $120 | $60 | $55 | | 3 | $55 | (i) | $55 | $45 | | 4 | $50 | $200 | $50 | $35 | | 5 | $45 | $225 | (ii) | $25 | | 6 | $40 | $240 | $40 | $15 | | 7 | $35 | $245 | $35 | $5 | | 8 | $30 | $240 | $30 | (iii) | #### Provided Information: - (i) Total revenue for 3 lessons is **$165**. - (ii) Average revenue for 5 lessons is **$45**. - (iii) Marginal revenue for the 8th lesson is **$-5**. Now let's explain the computations conducted on the provided information: 1. **Total Revenue (TR)**: Calculated by multiplying the quantity of lessons (Q) by the price (P). - For example, for 3 lessons: \(TR = 3 \times $55 = $165\). 2. **Average Revenue (AR)**: Determined by dividing the total revenue by the number of lessons. - For 5 lessons: \(AR = \frac{$225}{5} = $45\). 3. **
Transcribed Image Text:### Understanding the Demand for Snow Skiing Lessons per Day In this exercise, we aim to complete the table by filling in the values for Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR) for skiing lessons per day. Let's analyze the given information and learn how to calculate these values. Here's the table with given and missing values: #### Table: Demand for Snow Skiing Lessons | Lessons per Day (Q) | Price (P) | Total Revenue (TR = P × Q) | Average Revenue (AR = TR/Q) | Marginal Revenue (MR = Δ TR/Δ Q) | |---------------------|-----------|----------------------------|-----------------------------|-----------------------------------| | 0 | $70 | $0 | - | - | | 1 | $65 | $65 | $65 | $65 | | 2 | $60 | $120 | $60 | $55 | | 3 | $55 | (i) | $55 | $45 | | 4 | $50 | $200 | $50 | $35 | | 5 | $45 | $225 | (ii) | $25 | | 6 | $40 | $240 | $40 | $15 | | 7 | $35 | $245 | $35 | $5 | | 8 | $30 | $240 | $30 | (iii) | #### Provided Information: - (i) Total revenue for 3 lessons is **$165**. - (ii) Average revenue for 5 lessons is **$45**. - (iii) Marginal revenue for the 8th lesson is **$-5**. Now let's explain the computations conducted on the provided information: 1. **Total Revenue (TR)**: Calculated by multiplying the quantity of lessons (Q) by the price (P). - For example, for 3 lessons: \(TR = 3 \times $55 = $165\). 2. **Average Revenue (AR)**: Determined by dividing the total revenue by the number of lessons. - For 5 lessons: \(AR = \frac{$225}{5} = $45\). 3. **
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