1. The Gulf Sea Turtle Conservation Group (GSTCG), a 501(c) (3) non-profit group
ID: 1140524 • Letter: 1
Question
1. The Gulf Sea Turtle Conservation Group (GSTCG), a 501(c) (3) non-profit group of volunteers working to collect data on nesting sea turtles and to promote sea turtle conservation, is considering creating a video to educate people about sea turtle conservation. The cost of duplicating the video on a DVD and mailing the DVD to anyone is $6.58. In a GSTCG member meeting, the video plan was discussed. The first two columns of Table 1 show the expected demand for the DVD at different suggested donation levels. The GSTCG acts as a single-price monopolist. The receipts, if any, will be used to fund GSTCG supplies for their data collection and conservation work. At the end of each sea turtle nesting season, any excess funds are donated by the GSTCG to a local non-profit sea turtle research and rehabilitation facility.
a. Complete Table 1 by computing the Total Revenue, Marginal Revenue, and Profit columns.
Table 1
Suggested Donation per DVD Request
Anticipated Number of DVD Requests
Total Revenue
Marginal Revenue
Profit
$19.00
0
$15.00
2
$9.50
4
$7.75
10
$3.00
15
$0.00
20
b. The president wants the GSTCG to provide videos to generate the most possible donations (Total Revenue). What price, if any, is the president of the GSTCG favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answer.
c. The education outreach committee wants the GSTCG to provide videos to the highest possible number of people. What price, if any, is the educational outreach committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answer.
d. The treasurer of the GSTCG wants the DVD program to be as efficient as possible so that the marginal revenue equals marginal cost. What price, if any, is the treasurer favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answer.
e. The fundraising committee wants the DVD program to generate as much profit in donations as possible. What price, if any, is the fundraising committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answer.
Table 1
Suggested Donation per DVD Request
Anticipated Number of DVD Requests
Total Revenue
Marginal Revenue
Profit
$19.00
0
$15.00
2
$9.50
4
$7.75
10
$3.00
15
$0.00
20
Explanation / Answer
A)
Table 1
Suggested Donation per DVD Request
Anticipated Number of DVD Requests
Total Revenue
Marginal Revenue
Profit
$19.00
0
0
0
0
$15.00
2
30
30
16.84
$9.50
4
38
08
11.68
$7.75
10
77.5
39.5
11.7
$3.00
15
45
-32.5
-53.7
$0.00
20
0
-45
-131.6
B)
The President want GSTCG to provide the DVD at a cost of $7.75, with an anticipation that minimum 10 people purchase it, yeilding a profit of $11.7, but the most important is the total revenue can be $77.5, which is maximum.
C)
The education committe just want to promote sea turtle conservation, so they aim at reaching it at maximum. the maximum number of DVD that can be sold (anticipated) is 20, but that is at a price of 0, a complete loss to the GSTCG.
D)
The treasurer of the GSTCG wants the DVD program to be as efficient as possible so that the marginal revenue equals marginal cost, and it is possible 0n selling 10 units at a cost of $7.75, euates MR and MC, which is equal to $39.5
A)
Table 1
Suggested Donation per DVD Request
Anticipated Number of DVD Requests
Total Revenue
Marginal Revenue
Profit
$19.00
0
0
0
0
$15.00
2
30
30
16.84
$9.50
4
38
08
11.68
$7.75
10
77.5
39.5
11.7
$3.00
15
45
-32.5
-53.7
$0.00
20
0
-45
-131.6
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