The table below shows the marginal cost (MC) for The Tea Shop, a perfectly competitive firm producing different quantities of tea. The market price of tea is $5.50 a box. Instructions: In part a, round your answers to two decimal places. In part b, enter your answer as a whole number. a. Complete the marginal revenue (MR) column in the table below. The Tea Shop's Costs and Revenues Marginal Cost Quantity (tea) 50 75 100 125 150 175 200 225 (dollars) $5.00 4.50 4.00 5.50 9.00 boxes 14.50 21.50 30.50 Marginal Revenue (dollars) $ b. At a market price of $5.50 per box of tea, how many boxes of tea should The Tea Shop supply? c. Suppose there is an increase in demand. The likely effect on the market will be [(Click to select) in the market price and (Click to select) in the quantity produced by The Tea Shop.

The table below shows the marginal cost (MC) for The Tea Shop, a perfectly competitive firm producing different quantities of tea. The market price of tea is $5.50 a box. Instructions: In part a, round your answers to two decimal places. In part b, enter your answer as a whole number. a. Complete the marginal revenue (MR) column in the table below. The Tea Shop's Costs and Revenues Marginal Cost Quantity (tea) 50 75 100 125 150 175 200 225 (dollars) $5.00 4.50 4.00 5.50 9.00 boxes 14.50 21.50 30.50 Marginal Revenue (dollars) $ b. At a market price of $5.50 per box of tea, how many boxes of tea should The Tea Shop supply? c. Suppose there is an increase in demand. The likely effect on the market will be [(Click to select) in the market price and (Click to select) in the quantity produced by The Tea Shop.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 11E

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