ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Wilbur's is the only septic service in a remote village. The firm's total fixed cost is $125 a day
and marginal cost is zero. The table gives the demand schedule for service calls.
Price
(dollars per service call)
500
400
300
200
100
0
Quantity
(service calls per day)
0
2
4
Draw the firm's demand curve. Label it D.
Draw the firm's marginal revenue curve. Label it MR.
Draw the firm's marginal cost curve. Label it MC.
Draw a point at the profit-maximizing price and output.
Wilbur's economic profit is $
a dav.
689
10
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Transcribed Image Text:Wilbur's is the only septic service in a remote village. The firm's total fixed cost is $125 a day and marginal cost is zero. The table gives the demand schedule for service calls. Price (dollars per service call) 500 400 300 200 100 0 Quantity (service calls per day) 0 2 4 Draw the firm's demand curve. Label it D. Draw the firm's marginal revenue curve. Label it MR. Draw the firm's marginal cost curve. Label it MC. Draw a point at the profit-maximizing price and output. Wilbur's economic profit is $ a dav. 689 10
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