ACTIVITY 10 Fill in the table below. Output Price Total Revenue Marginal Revenue
ID: 2442266 • Letter: A
Question
ACTIVITY 10
Fill in the table below.
Output
Price
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
0
900
0
-----------------
400
---------------
1
900
600
2
850
1100
3
800
1800
4
750
2800
5
700
3900
6
650
5200
What is the profit max output level?
What is the profit per unit? (Price –ATC) Show all necessary work.
What is economic profit? Show all necessary work.
Fill in the table below.
Output
Price
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
0
500
0
---------------
300
----------------
1
500
460
2
480
680
3
460
980
4
440
1360
5
420
1860
6
400
2500
What is the profit max output level?
What is profit per unit? (Price – ATC) show all necessary work.
What is economic profit? Show all necessary work.
Fill in the table below.
Output
Price
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
0
700
0
-----------
200
----------------
1
700
320
2
640
460
3
580
580
4
520
650
5
460
690
6
400
800
What is the profit max output level?
What is profit per unit? (Price –ATC) Show all necessary work.
What is economic profit? Show all necessary work.
Fill in the table below.
Output
Price
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
0
800
0
--------------
100
---------------
1
800
150
2
760
250
3
720
400
4
680
560
5
640
740
6
600
900
What is the profit max output level?
What is the profit per unit? (Price –ATC) Show all necessary work.
What is economic profit? Show all necessary work.
Output
Price
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
0
900
0
-----------------
400
---------------
1
900
600
2
850
1100
3
800
1800
4
750
2800
5
700
3900
6
650
5200
Explanation / Answer
(Question 1)
Working notes:
(a) Total revenue (TR) = Price (P) x Quantity (Q)
(b) Marginal revenue (MR) = Change in TR / Change in Q
(c) Marginal cost (MC) = Change in Total Cost (TC) / Change in Q
(A) Profit is maximized when MR = MC, which holds true when MR = MC = $700 for Output of 3 units and price of $800.
(B) When Q = 3, ATC = TC/Q = $1800/3 = $600, so Unit profit = P - ATC = $800 - $600 = $200
(C) Economic profit = Q x Unit profit = 3 x $200 = $600
NOTE: As per Chegg Answering Policy, first question has been answered.
Output (Q) P ($) TR ($) MR ($) TC ($) MC ($) 0 900 0 400 1 900 900 900 600 200 2 850 1700 800 1100 500 3 800 2400 700 1800 700 4 750 3000 600 2800 1000 5 700 3500 500 3900 1100 6 650 3900 400 5200 1300Related Questions
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