Average Real Price/Ton Nominal Nominal Mfg. Rep's Earnings Revenue Commission Total Cost before Tax (S000) -129.840 -7.479 17.728 71.792 96.216 91.405 90.680 67.994 -11.670 -21.065 Sales Price ($000) 129.840 251.454 309.175 425.488| 492.402| 541.866 605.633 727.298 988.973 1042.133 ($000) ($000) ($000) Rate 5% 5% 5% 5% 5% 5% 5% 5% 6% 6% (Tons) 2001 2h 2002 1h 2002 2h 2003 1h 2003 2h 2004 1h 2004 2h 2005 1h 2005 2h 2006 1h 75 100 150 175 185 200 225 275 2.004 1.997 2.004 2.004 2.004 2.006 2.001 2.002 2.003 3.253 243.975 3.269 326.903 3.315 497.280 3.364 588.618 633.271 3.423 696.312 3.482 3.535 795.292 3.554 977.303 3.583 1021.067 285
Average Real Price/Ton Nominal Nominal Mfg. Rep's Earnings Revenue Commission Total Cost before Tax (S000) -129.840 -7.479 17.728 71.792 96.216 91.405 90.680 67.994 -11.670 -21.065 Sales Price ($000) 129.840 251.454 309.175 425.488| 492.402| 541.866 605.633 727.298 988.973 1042.133 ($000) ($000) ($000) Rate 5% 5% 5% 5% 5% 5% 5% 5% 6% 6% (Tons) 2001 2h 2002 1h 2002 2h 2003 1h 2003 2h 2004 1h 2004 2h 2005 1h 2005 2h 2006 1h 75 100 150 175 185 200 225 275 2.004 1.997 2.004 2.004 2.004 2.006 2.001 2.002 2.003 3.253 243.975 3.269 326.903 3.315 497.280 3.364 588.618 633.271 3.423 696.312 3.482 3.535 795.292 3.554 977.303 3.583 1021.067 285
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
what is the profit maximization for this chart? I know MR must equal MC MR=MC for profit maximization to occur. So how would I solve this problem here?
I want to know if this market is profitable.
Transcribed Image Text:Nominal
Marginal revenue
revenue
2001 2h
243.975
2002 1h
326.907
82.932
2002 2h
497.280
170.373
2003 1h
588.618
91.338
2003 2h
633.271
44.653
2004 1h
696.312
63.041
2004 2h
795.295
98.983
2005 2h
977.3030
182.008
2006 1h
1021.067
43.764
Transcribed Image Text:Average
Real
Nominal Nominal Mfg. Rep's
Earnings
Revenue Commission Total Cost before Tax
($000)
-129.840
-7.479
17.728
71.792
96.216
91.405
90.680
67.994
-11.670
-21.065
Sales
Price/Ton
Price
(S000)
($000)
129.840
251.454
309.175
425.488
492.402
541.866
605.633
727.298
988.973
(Tons)
($000)
(S000)
Rate
2001 2h
2002 1h
2002 2h
2003 1h
2003 2h
2004 1h
2004 2h
2005 1h
2005 2h
5%
5%
5%
5%
5%
5%
5%
5%
6%
6%
75
100
2.004
1.997
2.004
2.004
2.004
2.006
2.001
2.002
2.003
3.253
3.269
3.315
3.364
3.423
3.482
3.535
3.554
3.583 1021.067
243.975
326.903
497.280
588.618
633.271
696.312
795.292
150
175
185
200
225
275
285
977.303
2006 1h
1042.133
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education