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· secure ! https://www.matnx Student/PlayerHomeworkaspx?ho orkld-458173990&question;!d-1.. Q a Principles of Economics Soundous Hanana Homework: Week 3 Homework 35 pts Score: 0 of 1 pt 16 of 35 (35 complete) HW Score: 97.14%, 34 of: Instructor Assignable 5 Question Help Out of This World is the only private rocket ride in the nation. The table sets out the demand schedule for rides rides and the cost schedule for producing the rides. Calculate Out of This World's profit-maximizing price, output and economic profit if it charges a single price for all rides. Price dollars per ride) Quantity (rides Total cost (dollars per 1,000 2,500 4,000 5,500 7,000 8,500 10,000 11,500 13,000 45 40 100 Out of This World's profit-maximizing output is rides a day. 300 400 500 600 700 800 Out of This World's profit-maximizing price is $ a ride. >>>Answer to 2 decimal places. 20 15 10 s and then clic

Explanation / Answer

(IMAGE - 1, Week 3 Homework)

Total revenue (TR) = Price (P) x Quantity (Q)

Marginal revenue (MR) = Change in TR / Change in Q

Marginal cost (MC) = Change in Total cost (TC) / Change in Q

Therefore:

We find that MR = MC = $15 when Q = 400.

Profit-maximizing output = 400 rides

Profit-maximizing price = $30

NOTE: As per Chegg answering guideline, 1st question is answered.

P Q TR MR TC MC 50 0 0 1,000 45 100 4500 45 2,500 15 40 200 8000 35 4,000 15 35 300 10500 25 5,500 15 30 400 12000 15 7,000 15 25 500 12500 5 8,500 15 20 600 12000 -5 10,000 15 15 700 10500 -15 11,500 15 10 800 8000 -25 13,000 15

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