Question

a. Calculate the missing total-revenue and marginal-revenue amounts for Group 1. Instructions: Enter your answers as whole numbers in the gray-shaded cells. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Group 1 Group 2 Quantity Price Total Marginal Quantity Price Marginal Demanded Revenue Revenue Demanded Revenue Revenue $115 0 Total III 83 71 63 2 3 4 110 144 168 185 198 203 37 29 10 29 b. Assume that MC is $13 in both markets and MC = ATC at all output levels. What price will the firm charge in each market? Group 1: C Group 2: C u u nits at a price of nits at a price of c. Based solely on these two prices, which market has the higher price elasticity of demand? (Click to select)

Answer 1

TP MR 100 100 100 83 166 2 U7 213 71 4 39 63 63 63 23 10 2 47 13 3 6 88 144 34 4 42 168 294 42 185 2 96 37 37 198 13 33 33 297 7 | 0 290 29 whan MRI MRMC max nag C) = 33 Lowte pais ischory lughin in Gruip =C4)733) 13/12) Profe 288+ 198-12 Profat 320