Suppose that you produce and sell children's tables in a local market. Past experience enables you to estimate your demand and marginal costschedules. This information is presented in the accompanying table.Complete the following table by computing the total cost of producing each quantity. Then, compute the total revenue earned at each price level andthe marginal revenue earned at each price level.Price($ per table)605550454035Quantity Demanded(Tables per Week)201412345O Increase the priceO Leave the price unchangedO Decrease the price6Fixed Cost($)404040404040Total Cost Marginal Cost($)($)$$$$$90Given your demand and cost estimates, you should charge a price ofbetables, and you will earn a weekly profit of $2024293545Total Revenue($)Assuming you are currently charging $55 per table set, what should you do if you want to increase profits?$$$$$$Marginal Revenue($)$$$$$if you want to maximize your weekly profit. At this price, your output will

Total cost refers to the overall expense incurred by a business or individual in producing goods or…

Complete the following table by computing the total cost of producing each quantity. Then, compute the total revenue earned at each price level and the marginal revenue earned at each price level. Price ($ per table) 60 55 50 45 40 35 Quantity Demanded (Tables per Week) O Increase the price Leave the price unchanged 1 2 3 4 5 6 O Decrease the price Fixed Cost Total Cost Marginal Cost ($) ($) ($) 40 40 40 40 40 40 $ $ $ $ $ 90 Assuming you are currently charging $55 per table set, what should you do if you want to increase profits? Given your demand and cost estimates, you should charge a price of be tables, and you will earn a weekly profit of $ 20 24 29 35 45 Total Revenue ($) $ $ $ $ $ $ Marginal Revenue ($) $ $ $ $ $ if you want to maximize your weekly profit. At this price, your output will

Complete the following table by computing the total cost of producing each quantity. Then, compute the total revenue earned at each price level and the marginal revenue earned at each price level. Price ($ per table) 60 55 50 45 40 35 Quantity Demanded (Tables per Week) O Increase the price Leave the price unchanged 1 2 3 4 5 6 O Decrease the price Fixed Cost Total Cost Marginal Cost ($) ($) ($) 40 40 40 40 40 40 $ $ $ $ $ 90 Assuming you are currently charging $55 per table set, what should you do if you want to increase profits? Given your demand and cost estimates, you should charge a price of be tables, and you will earn a weekly profit of $ 20 24 29 35 45 Total Revenue ($) $ $ $ $ $ $ Marginal Revenue ($) $ $ $ $ $ if you want to maximize your weekly profit. At this price, your output will

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

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In 2019, a ski resort increased the prices it charged for one-day ski passes and season passes. If someone buys a season pass, he can ski as many days as he wishes. The table below provides information on the prices and the number of passes sold in 2018 and 2019. Type of Pass One day Season Price in 2018 x 34000 $60 $1,200 Number of Passes Sold in 2018 5,000 250 Price in 2019 $80 $1,400 Given the information in the table, we know that the revenue earned from selling day passes changed by $ 52000 , and the revenue earned from selling season passes changed by $ Number of Passes Sold in 2019 3,100 190 From the answers to Part 1, we know that the demand for day passes is elastic demand for season passes is inelastic and the
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