Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly competitive firm producing different quantities of apple pies.The

The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly competitive firm producing different quantities of apple pies.The market price of apple pies is $11.00 per pie.

a. Fill in the marginal revenue (MR) and average revenue (AR) columns.

Instructions: Round your answers to two decimal places.

Baker Street's Costs and Revenues

Quantity (apple pies)

TC (dollars)

MC (dollars)

MR

(dollars)

AR

(dollars)

15 $170.00 $10.00 $ $
20 217.50 9.50
25 267.50 10.00
30 322.50 11.00
35 387.50 13.00
40 462.50 15.00

Instructions: Enter your answers as a whole number.

b. At the market price of $11.00 per apple pie, how many apple pies should Baker Street make?

apple pies

c. If the market price for apple pies were to rise to $13.00 per apple pie, how many apple pies should Baker Street make?

apple pies

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics

Authors: Mark Hirschey

12th edition

9780324584844, 324588860, 324584849, 978-0324588866

More Books

Students also viewed these Economics questions

Question

What were some of the more obvious reasons for the SI crisis?

Answered: 1 week ago

Question

1. To take in the necessary information,

Answered: 1 week ago