The following table shows the total cost schedule for a perfectly competitive firm. The current price in this industry is $20. Fill in the marginal revenue and marginal cost columns of the table. (Enter your response as an integer.)
Output (units)
(Q)
Total Cost
(TC)
Marginal Revenue (MR)
Marginal Cost
(MC)
0
40
-
-
1
45
2
55
3
70
4
90
5
115
How I calculate this?
The following table shows the total cost schedule for a perfectly competitive firm. The current price in this industry is $20. Fill in the marginal revenue and marginal cost columns of the table. (Enter your response as an integer.)
| Output (units) (Q) | Total Cost (TC) | Marginal Revenue (MR) | Marginal Cost (MC) |
| 0 | 40 | - | - |
| 1 | 45 | ||
| 2 | 55 | ||
| 3 | 70 | ||
| 4 | 90 | ||
| 5 | 115 |
How I calculate this?
Related textbook solutions
Related questions
The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in this area is $10. Total cost includes all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table.
|
Total Hourly Output and Sales of Pizzas |
Total Hourly Cost ($) |
Total Revenue ($) |
Total Economic Profit ($) |
Marginal Cost ($) |
Marginal Revenue ($) |
|
0 |
6 |
0 |
0 |
- |
- |
|
1 |
10 |
10 |
0 |
Ā | Ā |
|
2 |
12 |
20 |
8 |
Ā | Ā |
|
3 |
13 |
30 |
17 |
Ā | Ā |
|
4 |
15 |
40 |
25 |
Ā | Ā |
|
5 |
19 |
50 |
31 |
Ā | Ā |
|
6 |
25 |
60 |
35 |
Ā | Ā |
|
7 |
33 |
70 |
37 |
Ā | Ā |
|
8 |
43 |
80 |
37 |
Ā | Ā |
|
9 |
55 |
90 |
35 |
Ā | Ā |
|
10 |
71 |
100 |
29 |
Ā | Ā |
How I calculate this?
Assignment 1 (10 points)
Willy's Widget, a monopoly, faces the following demand schedule (sales in widgets per month):
|
Price |
Ā |
Quantity |
|
80 |
Ā |
10 |
|
75 |
Ā |
20 |
|
70 |
Ā |
30 |
|
65 |
Ā |
40 |
|
60 |
Ā |
50 |
|
55 |
Ā |
60 |
|
50 |
Ā |
70 |
|
45 |
Ā |
80 |
|
40 |
Ā |
90 |
|
35 |
Ā |
100 |
|
30 |
Ā |
110 |
|
25 |
Ā |
120 |
|
20 |
Ā |
130 |
Calculate marginal revenue over each interval in the schedule. If marginal cost is constant at $38 and the fixed cost is $400, what is the profit-maximizing level of output? What is the level of profit? Explain your answer using marginal cost and marginal revenue.
Repeat the exercise for MC = $18
Assignment 2 (10 points)
The following diagram shows the cost structure of a monopoly firm as well as market demand. Identify on the graph and calculate the following:
Profit maximizing output level
Profit maximizing price
Total revenue
Total cost
Total profit or loss
