Below, you are given the total revenue and total cost associated with producing and selling different
quantities of a good. You will use this information to identify the marginal revenue and marginal cost
associated with producing different quantities of the good and the profit associated with each quantity.
Lastly, you will identify a rule for maximizing profit.
Scott's Sundaes is an ice cream shop, famous for its root beer floats. Scott's Sundaes is the only ice cream
shop in town. The table below provides the total revenue and total cost associated with selling different
quantities of root beer floats per hour of the business day.
In the table above, calculate the total revenue and marginal revenue associated with each quantity of
root beer floats.
In the table above, calculate the marginal cost and profit associated with each quantity of root beer
floats.
Below, you are given the total revenue and total cost associated with producing and selling different quantities of a good. You will use this information to identify the marginal revenue and marginal cost associated with producing different quantities of the good and the profit associated with each quantity. Lastly, you will identify a rule for maximizing profit.
Scott's Sundaes is an ice cream shop, famous for its root beer floats. Scott's Sundaes is the only ice cream shop in town. The table below provides the total revenue and total cost associated with selling different quantities of root beer floats per hour of the business day.
Price of Floats $7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00
Quantity of Floats Sold 0 1 2 3 4 5 6 7
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Profit
$5 6 8 11 15 20 26 33
1. In the table above, calculate the total revenue and marginal revenue associated with each quantity of root beer floats.
2. In the table above, calculate the marginal cost and profit associated with each quantity of root beer floats.