Question
13. A graph showing demand (DD ) and marginal revenue (MRMR ), average total cost (ATCATC ), average variable cost (AVCAVC ), and short-run marginal
13. A graph showing demand (DD ) and marginal revenue (MRMR ), average total cost (ATCATC ), average variable cost (AVCAVC ), and short-run marginal cost (MCMC ), with quantity of output (QQ ) on the horizontal axis and revenue and costs in dollars on the vertical axis. DD and MRMR both have vertical intercepts of $40; MRMR has horizontal intercept at 400 units and DD has horizontal intercept at 800 units.
At Q=150Q=150 , MC=$5MC=$5 , MR=AVC=$24MR=AVC=$24 , D=$33D=$33 , and ATC=$35ATC=$35 . At Q=300Q=300 , MR=MC=$10MR=MC=$10 , AVC=$20AVC=$20 , D=$25D=$25 , and ATC=$30ATC=$30 . At Q=450Q=450 , MRMR is negative, DD , AVCAVC , and MCMC all intersect at $17, and ATC=$26ATC=$26 . At Q=550Q=550 , MRMR is negative, D=$13D=$13 , AVC=$17AVC=$17 , and MC=ATCMC=ATC at $26.
If the firm decided to produce 200 units of output, what would be the marginal revenue and the price?
Select one:
a. MR=$20MR=$20 , P=$30P=$30
b. MR=$20MR=$20 , P=$7.50P=$7.50
c. MR=$0MR=$0 , P=$20P=$20
d. MR=$20MR=$20 , P=$20
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