Module 5 chp 25 Number 9

# Module 5 chp 25 Number 9 - Price Quantity total revenue...

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Compute the marginal and average revenue , Suppose the marginal cost of producing the good is a constant \$10 per unit of output, what quantity of output will the firm produce? Price Quantity total revenue average revenue marginal revenue \$100.00 1 \$100 \$100 \$95.00 2 \$190 \$95 \$90 \$88.00 3 \$264 \$88 \$74 \$80.00 4 \$320 \$80 \$56 firm would produce more than 4 units of good 1 as the marginal on the other hand firm would produce 3 units of good 2 as for 3 u

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Unformatted text preview: Price Quantity total revenue average revenue marginal revenue \$70.00 1 \$70 \$70 \$55.00 2 \$110 \$55 \$40 \$40.00 3 \$120 \$40 \$10 \$22.00 4 \$88 \$22 (\$32) l revenue is greater than marginal cost. It would produce the good until marginal revenue and cost units of good 2 marginal revenue and cost are are same t are same....
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