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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