Complete the following table and identify the profit maximizing output.
Quantity
Price ($)
Total Revenue ($)
Marginal Revenue ($)
Marginal Cost ($)
Total Profit
10
12
$120
$12
$8
$25
11
12
9
12
12
11
13
12
12
14
12
14
Complete the following table and identify the profit maximizing output.
| Quantity | Price ($) | Total Revenue ($) | Marginal Revenue ($) | Marginal Cost ($) | Total Profit |
| 10 | 12 | $120 | $12 | $8 | $25 |
| 11 | 12 | 9 | |||
| 12 | 12 | 11 | |||
| 13 | 12 | 12 | |||
| 14 | 12 | 14 |
Related textbook solutions
Related questions
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 |
Q7
Marginal cost is
| a. |
total revenue divided by the quantity of output. |
|
| b. |
total profit minus total costs. |
|
| c. |
the change in total cost brought about by selling an additional unit of the good. |
|
| d. |
the change in total revenue brought about by selling an additional unit of the good. |
|
| e. |
the change in total revenue minus the change in total costs. |
4 points
Q8
[Table 1] The dollar amounts that go in blanks (A) and (B) are, respectively,
Table-1
|
(1) |
(2) |
(3) |
|
|
Quantity Sold |
Marginal Revenue |
|
$10 |
10 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
$11 and $11. |
|
| b. |
$10 and $10. |
|
| c. |
$10 and $11. |
|
| d. |
$11 and $12. |
4 points
Q9
[Table 1] The dollar amounts that go in blanks (C) and (D) are, respectively,
Table-1
|
(1) |
(2) |
(3) |
|
|
Quantity Sold |
Marginal Revenue |
|
$10 |
10 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
$11 and $11. |
|
| b. |
$10 and $10. |
|
| c. |
$10 and $11. |
|
| d. |
$11 and $12. |
4 points
Q10
[Table 1] The demand curve facing the firm represented by the information in this table is
Table-1
|
(1) |
(2) |
(3) |
|
|
Quantity Sold |
Marginal Revenue |
|
$10 |
10 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
downward-sloping. |
|
| b. |
upward-sloping. |
|
| c. |
horizontal. |
|
| d. |
vertical. |
4 points
Q11
[Table 2] The dollar amounts that go in blanks (E) is:
Table 2
|
-1 |
-2 |
-3 |
-4 |
-5 |
-6 |
-7 |
|
Quantity Sold |
Marginal Revenue |
Marginal |
Total |
Total |
Profit |
|
|
Price |
Cost |
Cost |
Revenue |
|||
|
$10 |
10 |
80 |
$100 |
$20 |
||
|
$10 |
11 |
(A) |
8 |
88 |
$110 |
$22 |
|
$10 |
12 |
(B) |
(E) |
97 |
(G) |
(I) |
|
$10 |
13 |
(C) |
(F) |
107 |
(H) |
(J) |
|
$10 |
14 |
(D) |
11 |
118 |
$140 |
$22 |
| a. |
$8 |
|
| b. |
$9 |
|
| c. |
$10 |
|
| d. |
$11 |
4 points
Q12
[Table 2] The dollar amounts that go in blanks (F) is:
Table 2
|
-1 |
-2 |
-3 |
-4 |
-5 |
-6 |
-7 |
|
Quantity Sold |
Marginal Revenue |
Marginal |
Total |
Total |
Profit |
|
|
Price |
Cost |
Cost |
Revenue |
|||
|
$10 |
10 |
80 |
$100 |
$20 |
||
|
$10 |
11 |
(A) |
8 |
88 |
$110 |
$22 |
|
$10 |
12 |
(B) |
(E) |
97 |
(G) |
(I) |
|
$10 |
13 |
(C) |
(F) |
107 |
(H) |
(J) |
|
$10 |
14 |
(D) |
11 |
118 |
$140 |
$22 |
| a. |
$8 |
|
| b. |
$9 |
|
| c. |
$10 |
|
| d. |
$11 |
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 |
