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 16, Problem 1P
To determine
Marginal revenue product and Marginal resource cost.
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Students have asked these similar questions
The following figure shows the revenue and cost curves for a firm X.
RM
10
a.
b.
C.
7
6
LO
5
4
3.5
0
20 25 30
MC
40
AVC
AC
AR=MR
Units
If a firm X achieves productivity efficiency, what will be the total revenuel
generated
At what price will a firm stop operating? Please explain.
If the market price is RM4.00, what is the total profit or total loss.
Consider table 3.1. What is the dollar amount of average variable cost per unit at the production level of 600 units?
TC=3205
Production
(units)
0
100
Select one:
O a. 4.04
O b. 4.34
Oc 4.74
O d. 5.04
200
300
400
500
600
700
Rent
$300
$300
$300
$300
Wages
$200
$410
$650
$900
$1,200
$300
$300
$1,520
$300
$1,905
$300 $2,300
Supplies Tools
$0
$100
50
$100
$150
$200
$250
$300
$350
$200
$300
$400
$500
$600
$700
$800
Total Cost
$600
$960
$1,350
$1,750
$2,200
$2,670
$3,205
$3,750
3205
700
300
2,205 TVC
1
-
2205/600=
3.675
A
LO 11.2: I can calculate marginal cost, revenue, and profit and distinguish between marginal cost
and average cost.
Suppose that Patrick's Handmade Puppets has a production cost that is given by
C(x) = 2,000 + 130x – 0.6x2 + 0.002x3 dollars
(0
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