Four Microeconomics QuestionsHow to solve and answer these four questions? DescriptionThe firm's demand is asfollows:Price$18161514 13 12 10Quantity2345678Total variable costs are:Quantity TVC2$15345678Fixed costs are$15at all quantities212732374452 QUESTION 11. What is the Marginal Revenue at a quantity of 5?QUESTION 22, What is the Marginal Cost at a quantity of 7?QUESTION 33. Using the MR-MC rule, what is the profit maximizing quantity this firm should produce?QUESTION 44. How much profit do they make at this quantity?

Marginal revenue represents the additional income a company generates by selling one more unit of…

Description The firm's demand is as follows: Price $18 16 15 14 13 12 10 Quantity 2 3 4 5 6 78 Total variable costs are: Quantity TVC 2 $15 3 21 4 27 5 32 6 37 44 52 78 8 Fixed costs are $15 at all quantities

Description The firm's demand is as follows: Price $18 16 15 14 13 12 10 Quantity 2 3 4 5 6 78 Total variable costs are: Quantity TVC 2 $15 3 21 4 27 5 32 6 37 44 52 78 8 Fixed costs are $15 at all quantities

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 40P: Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from...

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Question

Four Microeconomics Questions

How to solve and answer these four questions?

Description
The firm's demand is as
follows:
Price
$18
16
15
14 13 12 10
Quantity
2
3
4
5
6
7
8
Total variable costs are:
Quantity TVC
2
$15
3
4
5
6
7
8
Fixed costs are
$15
at all quantities
21
27
32
37
44
52

QUESTION 1
1. What is the Marginal Revenue at a quantity of 5?
QUESTION 2
2, What is the Marginal Cost at a quantity of 7?
QUESTION 3
3. Using the MR-MC rule, what is the profit maximizing quantity this firm should produce?
QUESTION 4
4. How much profit do they make at this quantity?

Study of decisions made by households and business firms at an individual level. It includes several laws and theorems related to demand, supply, production, allocation of resources, and prices.

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Step 1: Define Marginal Revenue:

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Step 2: Calculate Marginal Revenue at Quantity of 5:

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Step 3: Calculate Marginal Cost at Quantity of 7:

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Step 4: Calculate Profit Maximizing Quantity:

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Step 5: Calculate Profit:

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