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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To answer the questions based on the given data 1 The marginal revenue for the firm of selling the 8...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Christopher Thomas, S. Charles Maurice
11th edition
978-0078021718
