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K Search this course CENGAGE I MINDTAP Problems: Chapters 21 and 22 just $3. The cost the upstream mill incurs for producing enough paper (one
Search this course CENGAGE I MINDTAP Problems: Chapters 21 and 22 just $3. The cost the upstream mill incurs for producing enough paper (one unit" of paper) to make one untt Of boxes is $9.50, y Tools Assume the two rndls operate as separate profit CWRers, and the paper null sets the pnce of paper, It follows that the marginal profitability of boxes represents the highest Vince that the box division would be Will'nq to pay the paper dmsion for boxes.. Furthermore. assume that faxed costs are SO for the paper mill. The followinq table summanzeS the quantity, total ren.eenue, and marginal costs from the perspective of the paper mill for sellgnq paper to the box at vanous prices. In the foflomng table, fill the marginal revenue, total cost, and total profit for the paper mill when selhno paper to the box my/" at each gyven pryce- Total Revenue Marginal revenue Marginal Cost Price (marginal profitability to the Box Mill) $30 $27 $24 $21 $18 Quantity (Units of Paper equivalent to One nox ) 2 3 4 5 Total Cost S9S0 S S Profit $30 $54 S72 $84 $90 s S S sqso s 59 so S9,so S $960 s $930 S
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