Question

“Italian pasta increasingly made of wheat from Canada and U.S” (Durishin, M. & Robinson, A. Vancouver Sun Newspaper, Tuesday, December 3, 2019, p. B4).

Im-Beom’s Farm operates in Perfect Competition. The farm’s output is given below.

Quantity of Labour, L	Total Production TMT
0	0.00
1	10.00
2	25.00
3	45.00
4	70.00
5	90.00
6	105.00
7	115.00
8	120.00
9	123.00
10	125.00

Suppose Im-Beom’s Industry/Market, operating in Perfect Competition, has an Industry/Market Equilibrium price of $3.7047 per thousand metric tonnes, TMT.

1. Given the Industry/Market Equilibrium Price of $3.7047 per thousand metric tonnes, TMT, Determine the Total Revenue, TR generated at each level of Im-Beom’s output or Total Production, TP.

Quantity of Labour, L	Total Production TMT	Total Revenue, TR
0	0.00
1	10.00
2	25.00
3	45.00
4	70.00
5	90.00
6	105.00
7	115.00
8	120.00
9	123.00
10	125.00

2. 
   Given the Total Revenue determined above, Calculate the Marginal Revenue, MR for each transition between levels.
   
3. Why are the values of each Marginal Revenue what they are? What seems different about them?

Marginal Revenue, MR

Answer 1