Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 2P
To determine
Total revenue and marginal revenue.
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You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following questions
F. How many burgers should you make if you want to optimize your profit?G. If you produce at the profit-maximizing level (or loss-minimizing level), what is theamount of economic profit (or loss) per burger will you make?H. Illustrate graphically BurgerDeals supply curve.
The following table represents the demand schedule (given by the first two columns of the table), TC, MC, TR and MR for one of many landscaping companies in Florida. The service the company provides includes mowing, planting some flowers and trimming trees. Use the information from the table to answer the questions below.
The goal of the landscaping company is to maximize its profit. How many customers should it serve per day? What price should it charge?
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A purely competitive wheat farmer can sell any wheat he grows for $30 per bushel.
His five hectares of land show diminishing returns, because some are better suited
for wheat production than others. The first hectare can produce 1000 bushels of
wheat, the second hectare 900, the third 800, and so on. Fill in the table given below
to answer the following questions. How many bushels will each of the farmer's five
hectares produce? How much revenue will each hectare generate? What are the TR
and MR for each hectare?
That
Hectare's
That Hectare's
Hectare #
Yield
Revenue
TR
MR
па
$0
$0
na
$4
24
$1
$1
$4
$
1
2
24
24
3
$4
4
2$
5
2$
2$
If the marginal cost of planting and harvesting an hectare is $24,000 per hectare for
each of the five hectares, how many hectares should the farmer plant and harvest?
hectares
%24
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