The marginal revenue function for Johnson Widget Works (JWW) is given bydr 100q+43dq q² +4q+3=where q, JWW's output (-demand), is measured in 100s of widgets/week and JWW'srevenue is measured in $1000s/week. JWW's marginal cost is constant, de/dq = 3, andtheir cost is also measured in $1000s/week.Suppose that the demand for JWW's product increases from 2000 to 2500 widgets/week.[Select]and theirIn this case, their weekly revenue will increase byweekly profit will change by [Select]Comment: pay attention to the units.

Given functions drdq=100q+43q2+4q+3dcdq=3q is in 100 unitsRevenue is measured in $1000 Cost is…

The marginal revenue function for Johnson Widget Works (JWW) is given by dr 100q+43 dq q² +4q+3 = where q, JWW's output (-demand), is measured in 100s of widgets/week and JWW's revenue is measured in $1000s/week. JWW's marginal cost is constant, dc/dq = 3, and their cost is also measured in $1000s/week. Suppose that the demand for JWW's product increases from 2000 to 2500 widgets/week In this case, their weekly revenue will increase by [Select] and thei weekly profit will change by [Select]

The marginal revenue function for Johnson Widget Works (JWW) is given by dr 100q+43 dq q² +4q+3 = where q, JWW's output (-demand), is measured in 100s of widgets/week and JWW's revenue is measured in $1000s/week. JWW's marginal cost is constant, dc/dq = 3, and their cost is also measured in $1000s/week. Suppose that the demand for JWW's product increases from 2000 to 2500 widgets/week In this case, their weekly revenue will increase by [Select] and thei weekly profit will change by [Select]

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 5E

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