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

Answer to the question is as follows :

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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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