The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week. ollars per small truck) 100 90 80 70 60 50 S Demand 5,50 Supply ?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week.
PRICE (Dollars per small truck)
100
90
80
70
80
50
40
30
20
10
0
Demand
I
01
5,50
2 3
8
5 6 7
QUANTITY (Hundreds of small trucks)
Supply
9 10
?
Suppose that SendIt is one of over a dozen competitive firms in the Bloomington area that offers moving truck rentals.
Based on the preceding graph showing the weekly market demand and supply curves, the price SendIt must take as given is S
Transcribed Image Text:The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 80 50 40 30 20 10 0 Demand I 01 5,50 2 3 8 5 6 7 QUANTITY (Hundreds of small trucks) Supply 9 10 ? Suppose that SendIt is one of over a dozen competitive firms in the Bloomington area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price SendIt must take as given is S
2. The demand curve facing a competitive firm
The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week.
PRICE(Dollars per small truck)
100
90
80 +
70
60
50
40
30
20
10
D
Demand
1
0
1
2
3
2
3
5
6
B
QUANTITY (Hundreds of small trucks)
5,50
4
O Supply curve
Supply
Suppose that SendIt is one of over a dozen competitive firms in the Bloomington area that offers moving truck rentals.
9
Based on the preceding graph showing the weekly market demand and supply curves, the price SendIt must take as given is S
Average revenue curve
10
Fill in the price and the total, marginal, and average revenue SendIt earns when it rents 0, 1, 2, or 3 trucks during move-in week.
Quantity Price
Total Revenue
(Trucks) (Dollars per truck) (Dollars)
Average Revenue
(Dollars per truck)
The demand curve faced by SendIt is identical to which of its other curves? Check all that apply.
Marginal revenue curve
Marginal cost curve
Marginal Revenue
(Dollars)
Transcribed Image Text:2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week. PRICE(Dollars per small truck) 100 90 80 + 70 60 50 40 30 20 10 D Demand 1 0 1 2 3 2 3 5 6 B QUANTITY (Hundreds of small trucks) 5,50 4 O Supply curve Supply Suppose that SendIt is one of over a dozen competitive firms in the Bloomington area that offers moving truck rentals. 9 Based on the preceding graph showing the weekly market demand and supply curves, the price SendIt must take as given is S Average revenue curve 10 Fill in the price and the total, marginal, and average revenue SendIt earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue (Trucks) (Dollars per truck) (Dollars) Average Revenue (Dollars per truck) The demand curve faced by SendIt is identical to which of its other curves? Check all that apply. Marginal revenue curve Marginal cost curve Marginal Revenue (Dollars)
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