ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Move the cursor to draw the marginal revenue curve using the information in the following table. Quantity Produced 0 1 2 3 4 5 6 80 70 60 50 400 30 20 10 07 Price ($) 80 75 70 65 60 55 50 2 Total Revenue ($) 0 75 140 195 240 275 300 Marginal Revenue ($) 3 4 Quantity Produced 5 6arrow_forwardUse the table to find the required value: Price $32 Quantity 400,000 Explicit Costs $3,500,000 Implicit Costs $4,100,000 Calculate the economic cost.arrow_forwardPlease solve these multiple questions. These are very important to me... THANK YOU!!!arrow_forward
- he company can produce the CD with no fixed cost and a variable cost of $5 per CD.a. Find total revenue for quantity equal to 10,000, 20,000, and so on. What is the marginal revenue for each 10,000 increase in the quantity sold?b. What quantity of CDs would maximize profit? What would the price be? What would the profit be?c. If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company? Why? Johnny Rockabilly has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows:PriceNumber of CDs$2410,0002220,0002030,0001840,0001650,0001460,000The company can produce the CD with no fixed cost and a variable cost of $5 per CD.arrow_forwardWhat is the maximum profit for individual pricingarrow_forwardTyped plz and asaparrow_forward
- Hersheypark in Pennsylvania mentions the following offer on its Web page: “A military discount is available at Hersheypark during the regular summer operating schedule off of the Regular, Junior and Senior One Day admission. This discount is available to active duty military, reserves, retired military personnel, and members of the National Guard.” This is _____ price discrimination.arrow_forwardFigure 12-6 Price (dollars per pound) 5 Market price 4 3 2 0 10 20 30 MC ATC D = MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Which of the following statements is true? O Jason cannot earn a profit from selling any number of apples. O Jason should produce where MC equals $3 (point d) where he will maximize his profit. O Jason should produce where MC equals $3 (point d) where he will minimize his losses. Jason should produce where the distance between MC and his demand curve is greatest (point b).arrow_forwardHenry Potter owns the only well in town that produces clean drinking water. He faces the following demand, marginal revenue, and marginal cost curves:Demand: P = 70 – QMarginal revenue: MR = 70 – 2QMarginal cost: MC = 10 + Qa) Graph these three curves. Assuming that Mr. Potter maximizes profit, what quantity does he produce? What price does he charge? Show these results on your graph.b) Mayor George Bailey, concerned about water consumers, is considering a price ceiling that is 10 percent below the monopoly price derived in part (a). What quantity would be demanded at this new price? Would the profit-maximizing Mr. Potter produce that amount? Explain. (Hint: Think about marginal cost.)c) George’s Uncle Billy says that a price ceiling is a bad idea because price ceilings cause shortages. Is he right in thiscase? What size shortage would the price ceiling create? Explain.d) George’s friend Clarence, who is even more concerned about consumers, suggests a price ceiling 50 percent below…arrow_forward
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