Use Table A below and calculate ATC, Profit, marginal revenue and marginal cost at each quantity of output - keep your calculation for follow up questions: Q P TR TC ATC Profit MR MC 0 $1,900 $0 $1,000 1 $1,700 $1,700 $2,000 2 $1,650 $3,300 $2,800 3 $1,600 $4,800 $3,500 4 $1,550 $6,200 $4,000 5 $1,500 $7,500 $4,500 6 $1,450 $8,700 $5,200 7 $1,400 $9,800 $6,000 8 $1,350 $10,800 $7,000 9 $1,300 $11,700
-
Use Table A below and calculate ATC, Profit, marginal revenue and marginal cost at each quantity of output - keep your calculation for follow up questions:
Q
P
TR
TC
ATC
Profit
MR
MC
0
$1,900
$0
$1,000
1
$1,700
$1,700
$2,000
2
$1,650
$3,300
$2,800
3
$1,600
$4,800
$3,500
4
$1,550
$6,200
$4,000
5
$1,500
$7,500
$4,500
6
$1,450
$8,700
$5,200
7
$1,400
$9,800
$6,000
8
$1,350
$10,800
$7,000
9
$1,300
$11,700
$9,000
a. Q
P
TR
TC
ATC
Profit
MR
MC
0
$1,900
$0
$1,000
$0
-$1000
$0
$0
1
$1,700
$1,700
$2,000
$2,000
-$300
$1,700
$1,000
2
$1,650
$3,300
$2,800
$1,400
$500
$1,600
$800
3
$1,600
$4,800
$3,500
$1,166.66
$1,300
$1,500
$700
4
$1,550
$6,200
$4,000
$1,000
$2,200
$1,400
$500
5
$1,500
$7,500
$4,500
$900
$3,000
$1,300
$500
6
$1,450
$8,700
$5,200
$866.66
$3,500
$1,200
$700
7
$1,400
$9,800
$6,000
$857.14
$3,800
$1,100
$800
8
$1,350
$10,800
$7,000
$875
$3,800
$1,000
$1,000
9
$1,300
$11,700
$9,000
$1,000
$2,700
$900
$2,000
b. Q
P
TR
TC
ATC
Profit
MR
MC
0
$1,900
$0
$1,000
$0
-$1000
$0
$0
1
$1,700
$1,700
$2,000
$2,000
-$1000
$0
$0
2
$1,650
$3,300
$2,800
$1,400
-$300
$1,700
$1,000
3
$1,600
$4,800
$3,500
$1,166.66
$500
$1,600
$1,000
4
$1,550
$6,200
$4,000
$1,000
$1,300
$1,500
$700
5
$1,500
$7,500
$4,500
$900
$2,200
$1,400
$500
6
$1,450
$8,700
$5,200
$866.66
$3,000
$1,300
$500
7
$1,400
$9,800
$6,000
$857.14
$3,500
$1,200
$700
8
$1,350
$10,800
$7,000
$875
$3,800
$1,100
$800
9
$1,300
$11,700
$9,000
$1,000
$3,800
$1,000
$1,000
c. Q
P
TR
TC
ATC
Profit
MR
MC
0
$1,900
$0
$1,000
$0
-$1000
$0
$0
1
$1,700
$1,700
$2,000
$1,000
-$300
$1,700
$1,000
2
$1,650
$3,300
$2,800
$1,000
$500
$1,600
$1,000
3
$1,600
$4,800
$3,500
$1,000
$1,300
$1,500
$700
4
$1,550
$6,200
$4,000
$1,000
$2,200
$1,400
$500
5
$1,500
$7,500
$4,500
$1,000
$3,000
$1,300
$500
6
$1,450
$8,700
$5,200
$1,000
$3,500
$1,200
$700
7
$1,400
$9,800
$6,000
$1,000
$3,800
$1,100
$800
8
$1,350
$10,800
$7,000
$1,000
$3,800
$1,000
$1,000
9
$1,300
$11,700
$9,000
$1,000
$2,700
$900
$2,000
d. Q
P
TR
TC
ATC
Profit
MR
MC
0
$1,900
$0
$1,000
$0
-$100
$10
$500
1
$1,700
$1,700
$2,000
$2,000
-$30
$1,700
$1,000
2
$1,650
$3,300
$2,800
$1,400
$50
$1,600
$1,000
3
$1,600
$4,800
$3,500
$1,166.66
$1,300
$1,500
$700
4
$1,550
$6,200
$4,000
$1,000
$2,200
$1,400
$500
5
$1,500
$7,500
$4,500
$900
$3,000
$1,300
$500
6
$1,450
$8,700
$5,200
$866.66
$3,500
$1,200
$700
7
$1,400
$9,800
$6,000
$857.14
$3,800
$1,100
$800
8
$1,350
$10,800
$7,000
$875
$3,800
$1,000
$1,000
9
$1,300
$11,700
$9,000
$1,000
$2,700
$900
$2,000
e. Q
P
TR
TC
ATC
Profit
MR
MC
0
$1,900
$0
$1,000
$0
-$1000
$0
$0
1
$1,700
$1,700
$2,000
$2,000
-$300
$1,700
$100
2
$1,650
$3,300
$2,800
$1,400
$500
$1,600
$100
3
$1,600
$4,800
$3,500
$1,166.66
$1,300
$1,500
$70
4
$1,550
$6,200
$4,000
$1,000
$2,200
$1,400
$50
5
$1,500
$7,500
$4,500
$900
$3,000
$1,300
$50
6
$1,450
$8,700
$5,200
$866.66
$3,500
$1,200
$70
7
$1,400
$9,800
$6,000
$857.14
$3,800
$1,100
$80
8
$1,350
$10,800
$7,000
$875
$3,800
$1,000
$100
9
$1,300
$11,700
$9,000
$1,000
$2,700
$900
$200
10 points
QUESTION 20
-
Use information from the table you calculated in Table A and identify
a. profit amount,
b.quantity and price at maximum profit and
c. quantity and price at the profit maximization rule point
It might help you if you plot the graphs to confirm your findings.
a. a. Profit = $2,400
b. Q = 8 P = $1,300
c. Q = 8 P = $1,000
b. a. Profit - $3,200
b. Q = 8 P = $1,400
c. Q = 8 P = $1,000
c. a. Profit - $2,550
b. Q = 9 P = $1,300
c. Q = 8 P = $1,000
d. a. Profit - $2,100
b. Q = 7 P = $1,400
c. Q = 7 P = $1,100
e. a. Profit - $3,800
b. Q = 8 P = $1,350
c. Q = 8 P = $1,000
Step by step
Solved in 2 steps with 2 images
