Chapter 9
What is the profit-maximizing level of output and price?
What is the amount of total profit?
Quantity
(units)
Price
(dollars)
Total Revenue (dollars)
Marginal revenue
(dollars)
Total
Cost
Marginal cost
(dollars)
1
22
6
6
2
20
14
8
3
18
26
12
4
16
44
18
5
14
72
28
6
12
112
40
7
10
166
54
8
8
236
70
Chapter 9
What is the profit-maximizing level of output and price?
What is the amount of total profit?
|
Quantity |
Price |
Total Revenue (dollars) |
Marginal revenue |
Total Cost |
Marginal cost |
|
1 |
22 |
6 |
6 |
||
|
2 |
20 |
14 |
8 |
||
|
3 |
18 |
26 |
12 |
||
|
4 |
16 |
44 |
18 |
||
|
5 |
14 |
72 |
28 |
||
|
6 |
12 |
112 |
40 |
||
|
7 |
10 |
166 |
54 |
||
|
8 |
8 |
236 |
70 |
Related textbook solutions
Related questions
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.
|
Price ($) |
Quantity |
|
|
Adults |
Children |
|
|
5 |
15 |
20 |
|
6 |
14 |
18 |
|
7 |
13 |
16 |
|
8 |
12 |
14 |
|
9 |
11 |
12 |
|
10 |
10 |
10 |
|
11 |
9 |
8 |
|
12 |
8 |
6 |
|
13 |
7 |
4 |
|
14 |
6 |
2 |
Calculate the price, quantity, and profit if: The amusement park charges the same price in the two markets combined
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quanitity (i.e. 10, 27, 4)
|
Price |
Quantity |
Total Revenue |
Marginal Revenue |
Marginal Cost |
Total Cost |
MR-MC |
Profit |
|
14 |
8 |
112 |
5 |
40 |
72 |
||
|
11 |
143 |
10.33 |
5 |
55 |
5.33 |
88 |
|
|
12 |
168 |
8.33 |
5 |
70 |
3.33 |
98 |
|
|
11 |
17 |
187 |
6.33 |
5 |
85 |
1.33 |
|
|
20 |
200 |
4.33 |
5 |
100 |
-0.67 |
100 |
|
|
9 |
207 |
2.33 |
5 |
115 |
-2.67 |
92 |
|
|
8 |
26 |
208 |
0.33 |
5 |
130 |
-4.67 |
|
|
29 |
203 |
-1.67 |
5 |
145 |
-6.67 |
58 |
|
|
6 |
192 |
-3.67 |
5 |
160 |
-8.67 |
||
|
5 |
35 |
175 |
-7.67 |
5 |
190 |
-12.67 |
-38 |
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is an average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.
|
Price ($) |
Quantity |
|
|
Adults |
Children |
|
|
5 |
15 |
20 |
|
6 |
14 |
18 |
|
7 |
13 |
16 |
|
8 |
12 |
14 |
|
9 |
11 |
12 |
|
10 |
10 |
10 |
|
11 |
9 |
8 |
|
12 |
8 |
6 |
|
13 |
7 |
4 |
|
14 |
6 |
2 |
Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quantity (i.e. 10, 27, 4)
|
Price |
Quantity |
Total Revenue |
Marginal Revenue |
Marginal Cost |
Total Cost |
MR-MC |
Profit |
|
6 |
84 |
5 |
30 |
34 |
|||
|
13 |
91 |
7 |
5 |
35 |
2 |
56 |
|
|
12 |
8 |
96 |
5 |
5 |
40 |
0 |
|
|
9 |
99 |
3 |
5 |
45 |
-2 |
54 |
|
|
10 |
100 |
1 |
5 |
50 |
-4 |
50 |
|
|
9 |
11 |
99 |
-1 |
5 |
55 |
-6 |
|
|
12 |
96 |
-3 |
5 |
60 |
-8 |
36 |
|
|
7 |
91 |
-5 |
5 |
65 |
-10 |
26 |
|
|
6 |
14 |
84 |
-7 |
5 |
70 |
-12 |
|
|
5 |
15 |
75 |
-9 |
5 |
75 |
-14 |
0 |
| Demand Data | Cost Data | ||
| Price | Quantity Demanded | Output | Total Cost |
| 5.5 | 3 | 3 | 5 |
| 5 | 4 | 4 | 6 |
| 4.5 | 5 | 5 | 6.5 |
| 3.85 | 6 | 6 | 7.5 |
| 3.35 | 7 | 7 | 9 |
| 2.90 | 8 | 8 | 11 |
| 2.5 | 9 | 9 | 14 |
From the monopoly data given above, compute the following for each level of output.
1) total revenue.
2) marginal revenue.
3) average costs
4) marginal cost.
5) the profit maximizing profit level of output. the q that maximizes profit.
6) the profit maximizing price.
7) the total level of profits at the profit maximizing output level.
