Question
Consider the data for a price-setting firm in the table below. All revenue and cost figures are in expressed in dollars. Quantity 0 2 4
Consider the data for a price-setting firm in the table below. All revenue and cost figures are in expressed in dollars.
| Quantity | 0 | 2 | 4 | 6 | 8 | 10 | 12 | 14 | 16 | 18 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenue | 0 | 200 | 360 | 480 | 560 | 600 | 600 | 560 | 480 | 360 |
| Total Cost | 40 | 140 | 240 | 340 | 440 | 540 | 640 | 740 | 840 | 940 |
Using the information above, answer the following questions.
The marginal revenue for the firm of selling the 8th unit of output is Answer dollars.
The marginal cost to the firm of producing the 2nd unit of output is Answer dollars.
The firm will maximise profits at an output (quantity) of Answer units.
The price the firm will charge for this level of output will be Answer dollars.
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Managerial Economics Foundations of Business Analysis and Strategy
Authors: Christopher Thomas, S. Charles Maurice
11th edition
978-0078021718
