Consider the graph below. It contains 2 separate demand curves, D1 and D2, the marginal revenue curve

Question:

Consider the graph below. It contains 2 separate demand curves, D1 and D2, the marginal revenue curve associated with each one, MR1 and MR2, a total marginal revenue curve, MRT, along with marginal cost. (You might want to look at page 586 in your book to get another example, only in that one the total marginal revenue curve is placed on the graph on the right...)
a. What is the TOTAL amount of output the firm should produce?
b. Approximately how much output should the firm allocate to market 1?
c. Approximately how much output should the firm allocate to market 2?
d. What is the approximate price that will be charged in market 1?
e. What is the approximate price that will be charged in market 2?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

a Totaloutput is at a price when MR T MC which is when both the curvesintersect at a price of 20 ...View the full answer

Answered By

Rustia Melrod

I am a retired teacher with 6 years of experience teaching various science subjects to high school students and undergraduate students. This background enables me to be able to help tutor students who are struggling with the science of business component of their education. Teaching difficult subjects has definitely taught me patience. There is no greater joy for me than to patiently guide a student to the correct answer. When a student has that "aha!" moment, all my efforts are worth it. The Common Core standards are a useful yardstick for measuring how well students are doing. My students consistently met or exceeded the Common Core standards for science. I believe in working with each student's individual learning styles to help them understand the material. If students were struggling with a concept, I would figure out a different way to teach or apply that concept. I was voted Teacher of the Year six times in my career. I also won an award for Innovative Teaching Style at the 2011 National Teaching Conference.

4.90+ 4+ Reviews 10+ Question Solved

Related Book For book-img-for-question

Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

See More Books

Question Posted: Sep 21, 2024 05:15 AM

See More Questions

Consider the graph below. It contains 2 separate demand curves, D1 and D2, the marginal revenue curve

Question:

Step by Step Answer:

a Totaloutput is at a price when MR T MC which is when both the curvesintersect at a price of 20 ...View the full answer

Intermediate Microeconomics and Its Application

Students also viewed these Managerial Accounting questions