Consider the following model of a monopolistic form, where P is the sale price of the good, MC is marginal cost of producing the good and q is quantity produced (assumed equal to quantity sold) the firm has to sell all units of the good at the same price. p=10-2q MC=2+q If the firm produces 3 units, what total revenue will it receive? a. £4 b. £6 c. £12 d. £24

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From the data given compute the sales price for each product T and O. From the data given compute variable cost per unit for each product T and O.   Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow.

The owner of a skating rink rents the rink for parties at $800 if 40 or fewer skaters attend, so that the cost per person is $20 if 40 attend. For each 5 skaters above 40, she reduces the price per skater by $0.50. (a) Construct a table that gives the revenue generated if 40, 50, and 60 skaters attend. No. of skaters Total Revenue 40 50 60 20 19 18 Price per Skater $800 $950 $ 1080 (b) Does the owner's revenue from the rental of the rink increase or decrease as the number of skaters increases from 40 to 60? lo The revenue increases. The revenue decreases. (c) Write the equation that describes the revenue for parties with x groups of five skaters more than 40 skaters. R(x) = (20-0.5x) (40+5x) (d) Find the number of skaters that will maximize the revenue. skaters (e) Find the maximum revenue. $ (f) When the revenue is at the maximum possible, what price is paid per skater? $