Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
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. **](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71553b3a-eb6b-4c59-80a6-2edc083690a2%2F2344573f-42b5-46f3-97fb-99361ed377ee%2Fuv5prid_reoriented.jpeg&w=3840&q=75)
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. **
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education