The table shows the marginal cost C'), the marginal revenue R'(x) for producing x items. The third column, P'(x). is partially completed. All values are in dollars per item.(a) Complete the remaining entries in the third column.(b) What does the table tell you about the revenue function?(c) Find the production level that maximizes profit.(a) Complete the remaining entries in the third column of the table on the right.c'(x)R'(x)P'(x)-216241(b) What does the table tell you about the revenue function? Select one and complete thebox, if necessary.104141401441O A. Items sell for $each.704141O B. There is not enough information to determine anything about the revenue function.9020641- 165(c) Find the production level that maximizes profit.Profit P(x) is a maximum when x=items are produced.

Answered: The table shows the marginal cost C'00,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table shows the marginal cost C'), the marginal revenue R'(x) for producing x items. The third column, P'(x). is partially completed. All values are in dollars per item.
(a) Complete the remaining entries in the third column.
(b) What does the table tell you about the revenue function?
(c) Find the production level that maximizes profit.
(a) Complete the remaining entries in the third column of the table on the right.
c'(x)
R'(x)
P'(x)
-21
62
41
(b) What does the table tell you about the revenue function? Select one and complete the
box, if necessary.
10
41
41
40
14
41
O A. Items sell for $
each.
70
41
41
O B. There is not enough information to determine anything about the revenue function.
90
206
41
- 165
(c) Find the production level that maximizes profit.
Profit P(x) is a maximum when x=
items are produced.

Expert Solution

Step 1

Marginal cost(MC) is the addition to cost in producing one more unit of output. Marginal revenue(MR) is the addition to total revenue from selling one more unit of output. C’(x) is MC, R’(x) is MR, and P’(x) is the difference between the MR and MC.

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