Question

Quantity Total Marginal

**Demanded
Price
revenue
revenue **

1 $325 $______

2 300 ______ $______

3 275 ______ ______

4 250 ______ ______

5 225 ______ ______

6 200 ______ ______

7 175 ______ ______

8 150 ______ ______

9 125 ______ ______

10 100 ______ ______

11 75 ______ ______

12 50 ______ ______

13 25 ______ ______

14 0 ______ ______

(a) What do the data in the table indicate about the relationship between total revenue and marginal revenue? Explain.

(b) What do the data in the table indicate about the elasticity of demand?

Answer #1

Output
Total cost
Marginal cost
Quantity demanded
Price
Marginal revenue
Profit
0
$ 50
XXXX
0
$60
XXXXX
$
1
80
$
1
55
$
2
120
2
50
3
150
3
45
4
170
4
40
5
185
5
35
6
205
6
30
7
235
7
25
8
275
8
20
9
325
9
15
10
385
10
10
Assume that the short-run cost and demand data given in the
table below confronts a monopolistic competitor selling a...

Price
Quantity demanded
Quantity produced
Total cost
0.40
500
0
100
0.50
400
100
105
0.60
300
200
120
0.70
200
300
145
0.80
100
400
180
0.90
0
500
225
The above schedule shows the price,
quantity demanded, quantity produced and total cost for a monopoly
firm.
Calculate the marginal revenue, marginal cost and average total
cost schedules.
What are the profit-maximizing output, price and economic
profit?
At the price charged, is the demand elastic or inelastic?...

Suppose you are given the following table:
Output
Price
Total Cost
Total Revenue
Marginal Revenue
Marginal Cost
Average Total Cost
Profit/
Loss
(P-ATC)
0
150
100
1
138
150
2
125
184
3
113
208
4
100
227
5
88
250
6
75
280
7
63
318
8
50
366
9
38
425
10
25
500
a. Determine the optimum /profit maximizing point using the
MR-MC Principle
b. At this point, what are the total profits?
c. Calculate (Price -...

Given the following data, find the multiple regression equation
for quantity demanded in terms of price, income, and advertising
expenditures
Quantity
Price
Income
Advertising Expenditures
200
25
1000
200
250
22
1140
200
275
21
1230
225
320
21
1232
225
332
20
1232
230
340
18
1240
235
346
16
1242
238
350
14
1245
240

Question 5
A. Explain five uses of the concept of elasticity of demand.
B. The demand curve for widgets is
QD = 10,000 - 25P.
a. How many widgets could be sold for $100?
b. At what price would widget sales fall to zero?
c. What is the total revenue (TR) equation for widgets in terms
of output, Q? What is the marginal revenue equation in terms of
Q?
d. What is the point-price elasticity of demand when P =...

Given demand curve
for Silvana Chocolates Company ( SCC )
a. How many Bars
could be sold for $100?
b. At what price
would SCC sales fall to zero?
QD = 10,000 -
25P.
c. What is the total
revenue (TR) equation for SCC in terms of output,
Q? What is the marginal revenue equation in terms of
Q?
d. What is the
point-price elasticity of demand when P = $150 ? What is
total revenue at this price? What...

below are the demand and supply schedule for hats.plot
both in the graph find the equilibrium price and quantity.
calculate the demand and supply equation.show your work.
price quantity demanded quantity supplied
$3
225
0
$6
200
20
$9
175
40
$12
150
60
$15
125
80
$18
100
100
$21
75
120
$24
50
140
$27
25
160

Table 14-12
Bill’s Birdhouses
COSTS
REVENUES
Quantity
Produced
Total
Cost
Marginal
Cost
Quantity
Demanded
Price
Total
Revenue
Marginal
Revenue
0
$0
--
0
$80
--
1
$50
1
$80
2
$102
2
$80
3
$157
3
$80
4
$217
4
$80
5
$285
5
$80
6
$365
6
$80
7
$462
7
$80
8
$582
8
$80
Refer to Table 14-12. At what quantity does
Bill maximize profits?
a.
7
b.
8
c.
3
d.
6

1. If the price decreases by 4 percent. As a result, the
quantity demanded increases by 12 percent. The price elasticity of
demand is………...
2. What is the relationship between elasticity and revenue?
3. A 7 percent reduction in the price of a product has zero
effect on the dollar amount of consumer expenditure on the product.
The price elasticity of demand is………
4. What does the price elasticity of demand coefficient
measures?
5. What is characteristic of the demand...

Use the demand schedule below to calculate total revenue and
marginal revenue at each quantity. Explain why the marginal revenue
of the fourth unit of output is $3.50, even though its price is
$5.
Price (P)
Quantity Demanded (Q)
Price (P)
Quantity Demanded (Q)
$7.00
0
$4.50
5
6.50
1
4.00
6
6.00
2
3.50
7
5.50
3
3.00
8
5.00
4
2.50
9

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