Quantity (pounds of cookies) Total revenue (dollars) Total cost, (dollars) 1 15 13 2 30 24 3 45 39 4 60 58 5 75 81
Added by Brittany R.
Close
Step 1
Step 2: Marginal revenue = Change in total revenue / Change in quantity Step 3: Marginal revenue = ($24 - $13) / (3 - 2) = $11 per pound of cookies Step 1: Determine what the firm should do when producing 1 pound of cookies to maximize profit. Step 2: Compare the Show more…
Show all steps
Your feedback will help us improve your experience
Andrew Davis and 51 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Table 14-6 Suppose that a firm in a competitive market faces the following revenues and costs: Quantity (Units) Total Revenue (Dollars) Total Cost (Dollars) 0 0 3 1 6 5 2 12 8 3 18 12 4 24 17 5 30 23 6 36 30 7 42 38 Refer to Table 14-6. The firm will produce a quantity greater than three because at 3 units of output, marginal cost a. equals marginal revenue. b. is greater than marginal revenue. c. is minimized. d. is less than marginal revenue.
Roee S.
Business As Usual Bakers' Club is trying to raise funds by selling premium chocolate chip cookies at a school fair. The variable cost to make each cookie is ₱15.00, and it is being sold for ₱25.00. So far, the organization has already shelled out ₱790.00 for the cookie sale. 1. Find the profit function P(x) where x represents the number of cookies sold. Hint: Profit = Total Revenue – Total Cost Total Revenue = Price per unit x quantity sold Total Cost = Total variable cost + fixed cost. 2. If 146 cookies were sold, how much is the total profit? 3. How many cookies must be made and sold to break even? Hint: Break-even point is the zero of P(x). 4. How many cookies should be sold to gain a profit of ₱250.00?
Michelle M.
The table below shows the number of total products produced by its corresponding number of laborers employed. Assume that each laborer receives P550 as a wage and the firm pays P700 rental fee for the equipment it uses. Number of Laborers | Number of Total Products Produced ------------------ | --------------------------------- 24 | 64 116 | 176 220 | 10 240 | 12 248 | 14 A. If the firm wants to minimize the cost per unit of production, how many units of output must it produce? B. If the product is sold for P26, should the seller still continue production? If yes, how many units of output? Justify your answer. C. At what price will the firm decide to shut down in the short run?
Azat N.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD