Van\'s Fire Engine is the sole seller of the engines in the, Van produced eight
ID: 1208989 • Letter: V
Question
Van's Fire Engine is the sole seller of the engines in the, Van produced eight fire engines, but he has decided to increase production to engine. The following graph shows the demand curve Van faces. As you can see, to sell the additional engine, Van must lower his price from $80,000 to $40,000 per fire engine. Note that while Van gains revenue from the additional engine he sells, he also losses revenue from the initial eight engines because he sells them all at lower price. Use the purple rectangle (diamond symbol) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbol) to shade the area representing the revenue gained from selling an additional engine at $40,000. Van____increase production from 8 to 9 fire engines because the____dominates in this scenario. True or False if Van's Fire Engines were a competitive from increased and $80,000 were the market price for an engine decreasing to price from $80,000 to $40,000 would result in the same change in the production and, this total revenue.Explanation / Answer
Can you please put the image clearly. Such that we can answer the same.
Possible put it as two images . data and image seperately.
Regards,
MR
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.