2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Waco, TX, during Baylor's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 60 50 40 30 20 10 0 0 Demand + 1 5 6 QUANTITY (Hundreds of small trucks) 0 1 2 3 Supply Suppose that You Yeet is one of over a dozen competitive firms in the Waco area that offers moving truck rentals. 9 10 Based on the preceding graph showing the weekly market demand and supply curves, the price YouYeet must take as given is 5 Fill in the price and the total, marginal, and average revenue YouYeet earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue Average Revenue (Trucks) (Dollars per truck) (Dollars) (Dollars) (Dollars per truck) Average revenue curve Marginal cost curve Marginal revenue curve The demand curve faced by YouYeet is identical to which of its other curves? Check all that apply. □ Supply curve

2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Waco, TX, during Baylor's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 60 50 40 30 20 10 0 0 Demand + 1 5 6 QUANTITY (Hundreds of small trucks) 0 1 2 3 Supply Suppose that You Yeet is one of over a dozen competitive firms in the Waco area that offers moving truck rentals. 9 10 Based on the preceding graph showing the weekly market demand and supply curves, the price YouYeet must take as given is 5 Fill in the price and the total, marginal, and average revenue YouYeet earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue Average Revenue (Trucks) (Dollars per truck) (Dollars) (Dollars) (Dollars per truck) Average revenue curve Marginal cost curve Marginal revenue curve The demand curve faced by YouYeet is identical to which of its other curves? Check all that apply. □ Supply curve

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Flagstaff, AZ, during Northern Arizona's fall move-in week. PRICE (Dollars per small trick) 100 90 70 8 8 8 8 8 8 8 0 0 Demand 1 2 0 1 2 3 QUANTITY (Hundreds of small trucks) Supply Suppose that Zoom be is one of over a dozen competitive firms in the Flagstaff area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is 9 Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price (Trucks) (Dollars per truck) Total Revenue Marginal Revenue (Dollars) (Dollars) Average Revenue (Dollars per truck) 10 O Marginal revenue curve O Supply curve O Marginal cost curve Ⓒ Average revenue curve 0 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply. $10
3. The components of marginal revenue Sean's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Sean produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Sean faces. As you can see, to sell the additional engine, Sean must lower his price from $80,000 to $60,000 per fire engine. Note that while Sean gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000. PRICE (Thousands of dollars per fire engine) Sean 100 90 80 70 40 10 ++ 0 0 1 True + 2 False 3 4 5 QUANTITY…
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3. The components of marginal revenue Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $80,000 to $40,000 per fire engine. Note that while Alex gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. dollars per fire engine) PRICE (Thousands Alex 200 180 160 140 120 100 80 60 40 20 0 0 + 1 True + False 2 + 4…
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2. The demand curve facing a competitive firm The following graph shows the daily market for large cardboard boxes in San Francisco. 0123456789104036322824201612840PRICE (Dollars per large box)QUANTITY (Millions of large boxes)DemandSupply Suppose that Talero is one of more than a hundred competitive firms in San Francisco that produce such cardboard boxes. Based on the preceding graph showing the daily market demand and supply curves, the price Talero must take as given is . Fill in the price and the total, marginal, and average revenue Talero earns when it produces 0, 1, 2, or 3 boxes each day. Quantity Price Total Revenue Marginal Revenue Average Revenue (Boxes) (Dollars per box) (Dollars) (Dollars) (Dollars per box) 0 0 – 1 2 3 The demand curve that Talero faces is identical to which of its other curves? Check all that apply. Marginal revenue…
3. The components of marginal revenue Manuel's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Manuel produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Manuel faces. As you can see, to sell the additional engine, Manuel must lower his price from $105,000 to $90,000 per fire engine. Note that while Manuel gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. 150 135 Revenue Lost 120 Demand 105 Revenue Gained 90 75 60 45 30 -15 PRICE (Thousands of dollars per…
2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Oviedo, FL, during UCF's fall move-in week. 100 90 80 PRICE (Dollars per small truck); 5 8 8 70 50 40 30 20 10 0 Demand 0 1 5,50 8 2 3 4 5 6 QUANTITY (Hundreds of small trucks) Supply 9 10 ? Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals.
3. The components of marginal revenue Felix's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Felix produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Felix faces. As you can see, to sell the additional engine, Felix must lower his price from $75,000 to $50,000 per fire engine. Note that while Felix gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $50,000 rather than $75,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. PRICE (Thousands of dollars per fire engine) Felix 250 225 200 175 150 125 100 75 25 0 0 1 O True 2 O…