1. The following data are price/quantity/cost combinations for Titan Industry's mainframe computer division: Quantity Units Price Total Cost of Per unit, $ Production, $ above 225,000 200,000 250,000 275,000 325,000 400,000 500,000 1 225,000 2 175,000 150,000 125,000 90,000 4. a. What is the marginal revenue if output rises from 2 to 3 units? (hint: calculate total revenue at each output level first)). What is the marginal cost if output rises from 4 to 5? Show your work. b. What quantity should Titan produce to maximize total profit? Show your work. What is Titan's fixed cost? How do Titan's marginal costs behave as output increases? Be C. specific.

1. The following data are price/quantity/cost combinations for Titan Industry's mainframe computer division: Quantity Units Price Total Cost of Per unit, $ Production, $ above 225,000 200,000 250,000 275,000 325,000 400,000 500,000 1 225,000 2 175,000 150,000 125,000 90,000 4. a. What is the marginal revenue if output rises from 2 to 3 units? (hint: calculate total revenue at each output level first)). What is the marginal cost if output rises from 4 to 5? Show your work. b. What quantity should Titan produce to maximize total profit? Show your work. What is Titan's fixed cost? How do Titan's marginal costs behave as output increases? Be C. specific.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 6SCQ: Urban transit systems, especially those with rail systems, typically experience significant...

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