Question 1:

Biodata Software is the sole seller of a programming language with unique scientific applications. The company finds that each month, it can sell 20 copies of the program at a price of $200 and 20 extra copies for each $50 reduction in price. (1) (2) (3) (4) Price Quantity Total Revenue Marginal Revenue ($ per copy ) (copies per month) ($ ) ($ per copy) 250 0 200 150 100 50 a. Fill in the above table. Remember that marginal values for marginal product are shown in rows between those used to show total and average values. Include a minus sign (-) for any negative values. b. Draw the business's demand and marginal revenue curves. Plot only the two endpoints of the demand curve, and six points on the marginal revenue curve-the five points in the table as well as the point that extends the marginal revenue line to the vertical axis-for a total of eight points. Remember to plot marginal values such as marginal revenue halfway between the two relevant quantities on the horizontal axis.Demand and Marginal Revenue for Bioda1a Software 300 - Tools 250 - / / 200 _' Demand Curw Marginal Rave 150 100 - 50 r $ per Copy -50 - U020) 400 - -150 - -200 - ". o 20 40 60 80 100 120 _ Quantity (Copies per month) c. Based on your graph in part b, at which quantity level does marginal revenue move from being positive to negative? copiesNirvana Resort operates in an oligopoly. The resort's room rentals are 0 per night at a rate of $160. 40 at $140. 80 at $120. 100 at $100, and 120 at $80, as Shown in the graph below. Nirvana Resort's Demand and Marginal Revenue Curves 180 160 _ E] 140 120 $perr00m S 3 8 8 o 20 0 20 40 60 80 100 120 140 Rooms per night a. Fill in this table. Remember that marginal values for marginal product are shown in rows between those used to show total and average values. Include a minus sign (-) for any negative values. (2) (1) Quantity (3 ) (4) Price (rooms per Total Revenue Marginal Revenue ($ per room) night) ($ ) ($ per room) 160 140 120 100 80 b. Why does the resort face a kink in its demand curve at a quantity of 80 rooms per night? In the ranges 0 to 40 rooms and 40 to 80 rooms, each time the price falls by $ . Quantity on the demand curve increases by rooms. In the ranges 80 to 100 rooms and 100 to 120 rooms, each time the price falls by $ . Quantity on the demand curve increases by rooms. c. Why does the resort's MR curve have a vertical segment at the quantity associated with the kink in the demand curve? The MR segment associated with the upper portion of the demand curve has a (Click to select) | value at 80 rooms than does the MR segment associated with the lower portion of the demand curve.True North Railways, which is the sole provider of passenger rail service to a remote community, has revenues and costs shown in the table below. (1) (2) (5) (6) Price Quantity (3) (4) Marginal Revenue Marginal Cost ($ per (passengers per Total Revenue Total Cost ($ per ($ per passenger) day) ($ ) ($) passenger ) passenger) 360 10,000 300 50 10, 800 240 75 11 , 700 180 100 12, 600 120 125 13, 600 60 150 14, 700 175 15,900 a. Fill in the above table. Enter all dollar values in the table and answers below with no cents -- i.e. "10" not "10.00. Remember to include a minus sign (-) in front of any negative values entered. b. True North's (Click to select) |quantity (using the quantities shown in the table above) is passengers and the price it charges is $ c. At this quantity, True North is making a short-run (Click to select) | of $