Suppose that Zoom be is one of over a dozen competitive firms in the Flagstaff area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is $10

Suppose that Zoom be is one of over a dozen competitive firms in the Flagstaff area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is $10

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

2. The demand curve facing a competitive firm
The following graph illustrates the market for small moving trucks in Flagstaff, AZ, during Northern Arizona's fall move-in week.
PRICE (Dollars per small trick)
100
90
70
8 8 8 8
8 8 8
0
0
Demand
1
2
0
1
2
3
QUANTITY (Hundreds of small trucks)
Supply
Suppose that Zoom be is one of over a dozen competitive firms in the Flagstaff area that offers moving truck rentals.
Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is
9
Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week.
Quantity
Price
(Trucks) (Dollars per truck)
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
Average Revenue
(Dollars per truck)
10
O Marginal revenue curve
O Supply curve
O Marginal cost curve
Ⓒ Average revenue curve
0
The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply.
$10

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