a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 25 205 7 30 237 6.50 35 272 7 40 312 8 45 362 10 50 422 12

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Chapter1: Making Economics Decisions
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The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $10 per box.

**Instructions:** Enter your answers as a whole number.

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

| Quantity of Gift Boxes | TC ($) | MC ($) | MR ($) | AR ($) |
|------------------------|--------|--------|--------|--------|
| 25                     | 205    | 7      |        |        |
| 30                     | 237    | 6.50   |        |        |
| 35                     | 272    | 7      |        |        |
| 40                     | 312    | 8      |        |        |
| 45                     | 362    | 10     |        |        |
| 50                     | 422    | 12     |        |        |

**Instructions:** For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number.

**b. Given a price of $10 per gift box, how many boxes of chocolate should Choco Lovers produce?**

\[ \_\_\_ \] gift boxes

What will the profit or loss be per gift box?
\[ \$ \_\_\_ \] per gift box

**c. Suppose that Choco Lovers raises the price to $12 per gift box. Now how many boxes should Choco Lovers produce?**

\[ \_\_\_ \] gift boxes

What will the new profit or loss be per gift box?
\[ \$ \_\_\_ \] per gift box
Transcribed Image Text:The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $10 per box. **Instructions:** Enter your answers as a whole number. **a. Fill in the marginal revenue (MR) and average revenue (AR) columns.** | Quantity of Gift Boxes | TC ($) | MC ($) | MR ($) | AR ($) | |------------------------|--------|--------|--------|--------| | 25 | 205 | 7 | | | | 30 | 237 | 6.50 | | | | 35 | 272 | 7 | | | | 40 | 312 | 8 | | | | 45 | 362 | 10 | | | | 50 | 422 | 12 | | | **Instructions:** For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. **b. Given a price of $10 per gift box, how many boxes of chocolate should Choco Lovers produce?** \[ \_\_\_ \] gift boxes What will the profit or loss be per gift box? \[ \$ \_\_\_ \] per gift box **c. Suppose that Choco Lovers raises the price to $12 per gift box. Now how many boxes should Choco Lovers produce?** \[ \_\_\_ \] gift boxes What will the new profit or loss be per gift box? \[ \$ \_\_\_ \] per gift box
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