The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number. a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Quantity of Gift Boxes 5 10 800030 15 20 Choco Lovers Cost and Revenue TC ($) MC (S) MR ($) 4 4 25 55 57 62 72 92 122 1 0.50 1 2 4 6 4 4 4 4 AR ($) 4 4 4 4 4 4 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce? 25 gift boxes What will the profit or loss be per gift box? per gift box Suppose that Choco Lovers raises the price to $6 per gift box. Now how many boxes should Choco Lovers produce? 30 gift boxes What will the new profit or loss be per gift box?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing
different quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box.
Instructions: Enter your answers as a whole number
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
Quantity of Gif
Boxes
5
10
15
20
25
30
Choco Lovers Cost and Revenue
TC ($)
MC ($)
MR ($)
55
4
57
4
62
4
72
92
122
30 gift boxes
1
0.50
1
2
4
6
4
4
4
What will the new profit or loss be per gift box?
AR ($)
4
4
4
Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be
sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number.
b. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce?
25 gift boxes
What will the profit or loss be per gift box?
per gift box
c. Suppose that Choco Lovers raises the price to $6 per gift box. Now how many boxes should Choco Lovers produce?
4
4
4
Transcribed Image Text:The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Quantity of Gif Boxes 5 10 15 20 25 30 Choco Lovers Cost and Revenue TC ($) MC ($) MR ($) 55 4 57 4 62 4 72 92 122 30 gift boxes 1 0.50 1 2 4 6 4 4 4 What will the new profit or loss be per gift box? AR ($) 4 4 4 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. b. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce? 25 gift boxes What will the profit or loss be per gift box? per gift box c. Suppose that Choco Lovers raises the price to $6 per gift box. Now how many boxes should Choco Lovers produce? 4 4 4
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