The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing differentquantities of chocolate gift boxes. The market price for a box of chocolates is $10 per box.Instructions: Enter your answers as a whole number.a. Fill in the marginal revenue (MR) and average revenue (AR) columns.Choco Lovers Cost and RevenueQuantityTCMCMRARof Gift Boxes($)($)($)($)252057302376.5035272740312845362105042212Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include anegative sign (-) in front of those numbers. A loss should be entered as a negative number.b. Given a price of $10 per gift box, how many boxes of chocolate should Choco Lovers produce?gift boxesWhat will the profit or loss be per gift box?$per gift boxc. Suppose that Choco Lovers raises the price to $12 per gift box. Now how many boxes should Choco Lovers produce?gift boxesWhat will the new profit or loss be per gift box?2$

Answer to the question is as follows :

a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 25 205 7 30 237 6.50 35 272 7 40 312 8 45 362 10 50 422 12

a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 25 205 7 30 237 6.50 35 272 7 40 312 8 45 362 10 50 422 12

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter8: Output, Price, And Profit: The Importance Of Marginal Analysis

Section: Chapter Questions

Problem 5TY

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The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $8 per box. Instructions: Enter your answers as a whole number. a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 20 115 5 25 137 4.50 30 162 35 192 40 232 8 45 282 10 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. b. Given a price of $8 per gift box, how many boxes of chocolate should Choco Lovers produce? gift boxes What will the profit or loss be per gift box? $ per gift box c. Suppose that Choco Lovers raises the price to $10 per gift box. Now how many boxes should Choco Lovers produce? gift boxes…
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