a) Revenue and profit at each output rate by referring to the below data. b) What is the profit maximizing rate of output? c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level? Output (Suits cleaned) Price per Suit ($) Total Costs ($) 0 8.00 3.00 1 7.50 6.00 2 7.00 8.50 3 6.50 10.50 4 6.00 11.50 5 5.50 13.50 6 5.00 16.00 7 4.50 19.00 8 4.00 24.00 Concept introduction: Revenue: Total amount received through product sales. Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them. Marginal revenue: Marginal revenue is the extra revenue earned by selling an extra product unit. Marginal cost: Marginal cost is the extra cost incurred by producing one extra unit of the commodity. Topic name and a short description about it: Profit maximization under monopoly market structure Answer: Revenue = Price * output Profit = Revenue -Total cost Profit is maximized at the level of 5 t h and 6 t h unit of the output For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6 t h unit of the output.

Question

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Answer 1

Question

Chapter 24, Problem 1P

To determine

a) Revenue and profit at each output rate by referring to the below data.

b) What is the profit maximizing rate of output?

c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level?

Output (Suits cleaned) Price per Suit ($) Total Costs ($)

0 8.00 3.00

1 7.50 6.00

2 7.00 8.50

3 6.50 10.50

4 6.00 11.50

5 5.50 13.50

6 5.00 16.00

7 4.50 19.00

8 4.00 24.00

Concept introduction:

Revenue: Total amount received through product sales.

Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them.

Marginal revenue:

Marginal revenue is the extra revenue earned by selling an extra product unit.

Marginal cost:

Marginal cost is the extra cost incurred by producing one extra unit of the commodity.

Topic name and a short description about it: Profit maximization under monopoly market structure

Answer:

Revenue = Price * output
Profit = Revenue -Total cost
Profit is maximized at the level of 5^t^h and 6^t^h unit of the output

For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6^t^h unit of the output.

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Answer 2

Question

Chapter 24, Problem 1P

To determine

a) Revenue and profit at each output rate by referring to the below data.

b) What is the profit maximizing rate of output?

c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level?

Output (Suits cleaned) Price per Suit ($) Total Costs ($)

0 8.00 3.00

1 7.50 6.00

2 7.00 8.50

3 6.50 10.50

4 6.00 11.50

5 5.50 13.50

6 5.00 16.00

7 4.50 19.00

8 4.00 24.00

Concept introduction:

Revenue: Total amount received through product sales.

Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them.

Marginal revenue:

Marginal revenue is the extra revenue earned by selling an extra product unit.

Marginal cost:

Marginal cost is the extra cost incurred by producing one extra unit of the commodity.

Topic name and a short description about it: Profit maximization under monopoly market structure

Answer:

Revenue = Price * output
Profit = Revenue -Total cost
Profit is maximized at the level of 5^t^h and 6^t^h unit of the output

For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6^t^h unit of the output.

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Answer 3

Question

Chapter 24, Problem 1P

To determine

a) Revenue and profit at each output rate by referring to the below data.

b) What is the profit maximizing rate of output?

c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level?

Output (Suits cleaned) Price per Suit ($) Total Costs ($)

0 8.00 3.00

1 7.50 6.00

2 7.00 8.50

3 6.50 10.50

4 6.00 11.50

5 5.50 13.50

6 5.00 16.00

7 4.50 19.00

8 4.00 24.00

Concept introduction:

Revenue: Total amount received through product sales.

Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them.

Marginal revenue:

Marginal revenue is the extra revenue earned by selling an extra product unit.

Marginal cost:

Marginal cost is the extra cost incurred by producing one extra unit of the commodity.

Topic name and a short description about it: Profit maximization under monopoly market structure

Answer:

Revenue = Price * output
Profit = Revenue -Total cost
Profit is maximized at the level of 5^t^h and 6^t^h unit of the output

For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6^t^h unit of the output.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 24, Problem 1P

To determine

a) Revenue and profit at each output rate by referring to the below data.

b) What is the profit maximizing rate of output?

c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level?

Output (Suits cleaned) Price per Suit ($) Total Costs ($)

0 8.00 3.00

1 7.50 6.00

2 7.00 8.50

3 6.50 10.50

4 6.00 11.50

5 5.50 13.50

6 5.00 16.00

7 4.50 19.00

8 4.00 24.00

Concept introduction:

Revenue: Total amount received through product sales.

Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them.

Marginal revenue:

Marginal revenue is the extra revenue earned by selling an extra product unit.

Marginal cost:

Marginal cost is the extra cost incurred by producing one extra unit of the commodity.

Topic name and a short description about it: Profit maximization under monopoly market structure

Answer:

Revenue = Price * output
Profit = Revenue -Total cost
Profit is maximized at the level of 5^t^h and 6^t^h unit of the output

For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6^t^h unit of the output.

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Answer 5

Chapter 24, Problem 1P

To determine

a) Revenue and profit at each output rate by referring to the below data.

b) What is the profit maximizing rate of output?

c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level?

Output (Suits cleaned) Price per Suit ($) Total Costs ($)

0 8.00 3.00

1 7.50 6.00

2 7.00 8.50

3 6.50 10.50

4 6.00 11.50

5 5.50 13.50

6 5.00 16.00

7 4.50 19.00

8 4.00 24.00

Concept introduction:

Revenue: Total amount received through product sales.

Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them.

Marginal revenue:

Marginal revenue is the extra revenue earned by selling an extra product unit.

Marginal cost:

Marginal cost is the extra cost incurred by producing one extra unit of the commodity.

Topic name and a short description about it: Profit maximization under monopoly market structure

Answer:

Revenue = Price * output
Profit = Revenue -Total cost
Profit is maximized at the level of 5^t^h and 6^t^h unit of the output

For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6^t^h unit of the output.

Answer 6

Chapter 24, Problem 1P

To determine

a) Revenue and profit at each output rate by referring to the below data.

b) What is the profit maximizing rate of output?

c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level?

Output (Suits cleaned) Price per Suit ($) Total Costs ($)

0 8.00 3.00

1 7.50 6.00

2 7.00 8.50

3 6.50 10.50

4 6.00 11.50

5 5.50 13.50

6 5.00 16.00

7 4.50 19.00

8 4.00 24.00

Concept introduction:

Revenue: Total amount received through product sales.

Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them.

Marginal revenue:

Marginal revenue is the extra revenue earned by selling an extra product unit.

Marginal cost:

Marginal cost is the extra cost incurred by producing one extra unit of the commodity.

Topic name and a short description about it: Profit maximization under monopoly market structure

Answer:

Revenue = Price * output
Profit = Revenue -Total cost
Profit is maximized at the level of 5^t^h and 6^t^h unit of the output

For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6^t^h unit of the output.

Answer 7

Chapter 24, Problem 1P

To determine

a) Revenue and profit at each output rate by referring to the below data.

b) What is the profit maximizing rate of output?

c) Calculate the dry cleaner’s marginal revenue and marginal cost at each output level. What is the profit maximizing output level?

Output (Suits cleaned) Price per Suit ($) Total Costs ($)

0 8.00 3.00

1 7.50 6.00

2 7.00 8.50

3 6.50 10.50

4 6.00 11.50

5 5.50 13.50

6 5.00 16.00

7 4.50 19.00

8 4.00 24.00

Concept introduction:

Revenue: Total amount received through product sales.

Profit: Profit is the difference between total revenue earned by selling the product and total cost incurred by producing them.

Marginal revenue:

Marginal revenue is the extra revenue earned by selling an extra product unit.

Marginal cost:

Marginal cost is the extra cost incurred by producing one extra unit of the commodity.

Topic name and a short description about it: Profit maximization under monopoly market structure

Answer:

Revenue = Price * output
Profit = Revenue -Total cost
Profit is maximized at the level of 5^t^h and 6^t^h unit of the output

For a monopoly, the profit is maximized at the level of output where marginal revenue is equal to marginal cost. Therefore, from the table in answer (c) we can see it at the 6^t^h unit of the output.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 24 - Prob. 24.1LO Ch. 24 - Prob. 24.2LO Ch. 24 - Prob. 24.3LO Ch. 24 - Prob. 24.4LO Ch. 24 - Prob. 24.5LO Ch. 24 - Prob. 24.1SC Ch. 24 - Prob. 24.2SC Ch. 24 - Prob. 24.3SC Ch. 24 - Prob. 24.4SC Ch. 24 - Prob. 24.5SC

Output (Suits cleaned)	Price per Suit ($)	Total Costs ($)
0	8.00	3.00
1	7.50	6.00
2	7.00	8.50
3	6.50	10.50
4	6.00	11.50
5	5.50	13.50
6	5.00	16.00
7	4.50	19.00
8	4.00	24.00

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Chapter 24 Solutions