Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 2P
To determine
Total revenue and marginal revenue.
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Students have asked these similar questions
A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. Draw a table with multiple columns to help you answer the following questions. How many bushels will each of the farmer’s five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre? If the marginal cost of planting and harvesting an acre is $7,000 per acre for each of the five acres, how many acres should the farmer plant and harvest?
The following table represents the demand schedule (given by the first two columns of the table), TC, MC, TR and MR for one of many landscaping companies in Florida. The service the company provides includes mowing, planting some flowers and trimming trees. Use the information from the table to answer the questions below.
The goal of the landscaping company is to maximize its profit. How many customers should it serve per day? What price should it charge?
How much profit does this company make per day if it is maximizing its profit?
A purely competitive wheat farmer can sell any wheat he grows for $30 per bushel.
His five hectares of land show diminishing returns, because some are better suited
for wheat production than others. The first hectare can produce 1000 bushels of
wheat, the second hectare 900, the third 800, and so on. Fill in the table given below
to answer the following questions. How many bushels will each of the farmer's five
hectares produce? How much revenue will each hectare generate? What are the TR
and MR for each hectare?
That
Hectare's
That Hectare's
Hectare #
Yield
Revenue
TR
MR
па
$0
$0
na
$4
24
$1
$1
$4
$
1
2
24
24
3
$4
4
2$
5
2$
2$
If the marginal cost of planting and harvesting an hectare is $24,000 per hectare for
each of the five hectares, how many hectares should the farmer plant and harvest?
hectares
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