Answered

Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

a. Complete the following table: Answer the marginal revenue.

Instructions: Enter your responses rounded to the nearest whole number. Indicate a negative response with a (-) negative sign.

Price $24 $21 $18 $15 $12 $9 $6 $3
Quantity Demanded 1 2 3 4 5 6 7 8
Marginal Revenue $ $ $ $ $ $ $ $

b. At what rate of output does marginal revenue turn negative?
c. If marginal cost is constant at $12, what is the profit-maximizing rate of output?
d. Assuming a firm has monopoly power, what price should be charged at that rate of output? $_____

Sagot :

jepessoa

Answer:

a)

Price                             $24   $21   $18   $15   $12    $9    $6    $3

Quantity Demanded      1         2      3       4      5       6      7       8

Marginal Revenue       $24   $18   $12   $6    $0    -$6  -$12  -$18

b) marginal revenue turns negative at 6 units

c) 5 units, since profits are maximized when MC = MR

d) $12, again profits are maximized when MC = MR

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.