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28 Sep 2019
Number of newspapers per day (Q)
Total revenue (including advertising revenues) per day (TR)
Total cost per day (TC)
Marginal Revenue (MR)
Marginal Cost (MC)
Total Profit
0
0
3500
$ -
$ -
$ (3,500.00)
1000
3250
3600
$ 3.25
$ 0.10
$ (350.00)
2000
4250
3700
$ 1.00
$ 0.10
$ 550.00
3000
4750
3860
$ 0.50
$ 1.60
$ 890.00
4000
5000
4020
$ 0.25
$ 1.60
$ 980.00
5000
5200
4300
$ 0.20
$ 0.28
$ 900.00
6000
5375
4500
$ 0.18
$ 0.20
$ 875.00
7000
5400
4590
$ 0.03
$ 0.09
$ 810.00
8000
5375
4810
$ (0.03)
$ 0.22
$ 565.00
9000
5225
5050
$ (0.15)
$ 0.24
$ 175.00
Q6) What is total fixed cost ?
Q7) If Star's total fixed costs were to DOUBLE for some reason, how much profit (or loss) does Star make when fixed costs are doubled?
Q8) Given your answer in #7, should the Star shut down, why or why not? If they should continue to produce, how many papers should they produce? Explain your choice in 25-50 words.
Number of newspapers per day (Q) | Total revenue (including advertising revenues) per day (TR) | Total cost per day (TC) | Marginal Revenue (MR) | Marginal Cost (MC) | Total Profit |
0 | 0 | 3500 | $ - | $ - | $ (3,500.00) |
1000 | 3250 | 3600 | $ 3.25 | $ 0.10 | $ (350.00) |
2000 | 4250 | 3700 | $ 1.00 | $ 0.10 | $ 550.00 |
3000 | 4750 | 3860 | $ 0.50 | $ 1.60 | $ 890.00 |
4000 | 5000 | 4020 | $ 0.25 | $ 1.60 | $ 980.00 |
5000 | 5200 | 4300 | $ 0.20 | $ 0.28 | $ 900.00 |
6000 | 5375 | 4500 | $ 0.18 | $ 0.20 | $ 875.00 |
7000 | 5400 | 4590 | $ 0.03 | $ 0.09 | $ 810.00 |
8000 | 5375 | 4810 | $ (0.03) | $ 0.22 | $ 565.00 |
9000 | 5225 | 5050 | $ (0.15) | $ 0.24 | $ 175.00 |
Q6) What is total fixed cost ?
Q7) If Star's total fixed costs were to DOUBLE for some reason, how much profit (or loss) does Star make when fixed costs are doubled?
Q8) Given your answer in #7, should the Star shut down, why or why not? If they should continue to produce, how many papers should they produce? Explain your choice in 25-50 words.
Darryn D'SouzaLv10
28 Sep 2019