QUESTION 6 (Figure: Marginal Revenue) What is the marginal revenue of the fourth unit in the following example? Price $7 $6 $5 $4 $2 $1 1 2 3 4 5 6 7 B Quantity O a. 520 Ob- $5 O c.$2 O d.$1QUESTION 7 (Figure: Jenna's Laundromat) Jenna has run a laundromat for many years. For most of that period, her revenues have exactly covered the costs of running the business plus what she could earn in any alternative profession for which she's suited. A recent decline in the local population, however, has resulted in fewer customers for her business, causing her revenues to fall below her total costs-including her implicit opportunity costs. Consider the accompanying diagram. Jenna's current demand curve is: Price (S) | Average cost A B C Quantity O a A. Ob- B. O c. C. O d. unknowable, based on the information given.QUESTION 8 (Figure: Barrack's Company) Barrack is founding a company that sells a new line of corduroy products, including pants, jackets, and hats. He has identified two markets, Dallas and New Orleans, in which he projects he would earn positive economic profits. Barrack estimates two market demand curves for the two cities, as shown in the graph. Price (S)| Average cost Firm Demand New Orleans Firm Demand Dallas Quantity If Barrack has the resources only to enter one market, which one should it be, and why? a. Dallas, because in that market, the market demand curve and Barrack's average cost curve are closer to each other than in the New Orleans market. b- New Orleans, because profits will, at least initially, be higher there than in Dallas. c. Dallas, because profits will, at least initially, be higher there than in New Orleans. O d. New Orleans, because Barrack could maintain economic profits there over the long run.QUESTION 9 (Figure: The Cost Curves for Charlie's Cookie Confections) Wee Figure: The Cost Curves for Charlie's Cookie Confections. The curve labeled X represents the firm's cost curve. Cost per unit V W X Y 0 Quantity O a. marginal O b. average O c. fixed costs per unit O d variable costs per unitQUESTION 10 (Figure: Profit Margin 2) What is the profit margin for this firm at a quantity of eight? Price or cost $12 Marginal $11 cost $10 $9 $8 $7 Average $6 cost $5 Variable $4 cost per $3 unit $2 Demand $1 $-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Quantity $-2 $-3 $-4 $-5 O a. $6.00 - $3.00 =$3.00 O b-56.50 - $3.50 =$2.50 O c. $3.50 -$3.00 = $.50 O d-53.50 -$6.00 =$2.50