Question

Question:

The table below depicts the prices and total costs a local used-book store faces. The bookstore competes with a number of similar stores, but if capitalizes on its location and the word-of-mouth reputation of the coffee it serves to its customers. Calculate the store's total revenue, total profit, marginal revenue, and marginal cost at each level of output, beginning with the first unit.

Output	Price per book ($)	Total costs ($)	Total revenue ($)	Total profit ($)	Marginal revenue ($)	Marginal cost ($)
0	8	2.00			-	-
1	7.75	5.25
2	7.50	7.50
3	7.25	9.60
4	7	12.10
5	6.75	15.60
6	6.5	19.75
7	6.25	24.50

Answer 1

Marginal revenue= change in total revenue due to one additional unit of output.

Marginal coast = change in total cost due to one

additional Unit of output.

Total profit = Revenue - cost

Total revenue= price* output