How about for when he does 8 customers?I'm having trouble figuring out how to do this due to the fact that I can't seem to understand when MR is truly greater than MC.VC and TFC are still the same. Not satisfied with his current situation, Sheldon increases his service area so that he now has eight possible customers with differentwillingness to pay for a month of lawn service as depicted in the table below.Customer123457∞Willingness to pay for a month of lawn service$180$160$140$120$100$80$60$40

Profit is maximized where MR = MC. MR is the marginal revenue and MC is the marginal Cost.…

Answered: How about for when he does 8 customers?…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter23: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 3CQ

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How about for when he does 8 customers?
I'm having trouble figuring out how to do this due to the fact that I can't seem to understand when MR is truly greater than MC.
VC and TFC are still the same.

Not satisfied with his current situation, Sheldon increases his service area so that he now has eight possible customers with different
willingness to pay for a month of lawn service as depicted in the table below.
Customer
1
2
3
4
5
7
∞
Willingness to pay for a month of lawn service
$180
$160
$140
$120
$100
$80
$60
$40

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