Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Textbook Question
Chapter 10, Problem 19P

Andrea’s Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to charge to maximize profits. The first two columns in Table 10.5 provide the price and quantity for the demand curve for treatments. The third column shows its total costs. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?

Students have asked these similar questions
Andrea’s Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The first two columns in Table provide the price and quantity for the demand curve for treatments. The third column shows its total costs. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?
Andrea’s Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The first two columns in the table below provide the price and quantity for the demand curve for treatments. The fifth column shows its total costs. Complete the table. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?   Price Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost \$25 0 \$0 N/A \$130 N/A \$24 10     \$275   \$23 20     \$435   \$22.50 30     \$610   \$22 40     \$800   \$21.60 50     \$1005   \$21.20 60     \$1225
Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. Answer the following question accordingly. Price QuantityTC \$25.00 \$100 \$24.00 10 \$250 \$23.00 20 \$420 \$22.00 30 \$600 \$21.00 40 \$780 \$20.00 50 \$970 \$19.00 60 \$1,170 Total fixed costs in the above table is: Select one: a. \$130 b. \$10 c. \$100 d. Zero
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