The following table represents the demand schedule (given by the first two columns of the table), TC, MC, TR and MR for one of many landscaping companies in Florida. The service the company provides includes mowing, planting some flowers and trimming trees. Use the information from the table to answer the questions below. The goal of the landscaping company is to maximize its profit. How many customers should it serve per day? What price should it charge? How much profit does this company make per day if it is maximizing its profit?
The following table represents the demand schedule (given by the first two columns of the table), TC, MC, TR and MR for one of many landscaping companies in Florida. The service the company provides includes mowing, planting some flowers and trimming trees. Use the information from the table to answer the questions below. The goal of the landscaping company is to maximize its profit. How many customers should it serve per day? What price should it charge? How much profit does this company make per day if it is maximizing its profit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following table represents the demand schedule (given by the first two columns of the table), TC, MC, TR and MR for one of many landscaping companies in Florida. The service the company provides includes mowing, planting some flowers and trimming trees. Use the information from the table to answer the questions below.
The goal of the landscaping company is to maximize its profit. How many customers should it serve per day? What price should it charge?
How much profit does this company make per day if it is maximizing its profit?
Transcribed Image Text:TABLE 5
Number of
customers
per day (Q)
5
10
15
20
25
30
35
Price of
the
service
(P)
$220
210
20.0
190
180
170
160
Total
cost
(TC)
$150
400
700
1075
1550
2150
2900
Marginal
cost (MC)
$50
60
75
95
120
150
Total
revenue
(TR)
$1,100
2,100
3,000
3,800
4,500
5,100
5,600
Marginal
revenue
(MR)
$200
180
160
140
120
100
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