Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our 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

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.