Question

1. The Gulf Sea Turtle Conservation Group (GSTCG), a non-profit group of volunteers working to collect data on nesting sea turtles and to promote sea turtle conservation, is considering creating a video to educate people about sea turtle conservation. The cost of duplicating a video on a DVD and mailing the DVD is $5.56. In a GSTCG member meeting, the video plan was discussed. The first two columns of Table 1 below shows the expected demand for the DVD at different suggested donation levels, and they can act as a single-price monopolist if they choose to. The receipts will be used to fund GSTCG supplies for their data collection

Answer 1

Total revenue is calculated as follows -

Total revenue = Suggested donation per DVD request * Anticipated number of DVD requests

Marginal revenue is calculated as follows -

Marginal revenue = Change in total revenue/Change in anticipated number of DVD requests

Total cost is calculated as follows -

Total cost = Marginal cost * Anticipated number of DVD requests

Profit is calculated as follows -

Profit = Total revenue - Total Cost

Based on the above formulas, following is the complete table -

Suggested donation per DVD request	Anticipated number of DVD requests	Total Revenue	Marginal Revenue	Total Cost	Profit
$19	0	$0	-	-	-
$15	2	$30	$15	$11.12	$18.88
$9.50	5	$47.50	$5.83	$27.80	$19.70
$7.75	9	$69.75	$5.56	$50.04	$19.71
$3	15	$45	$-4.12	$83.40	$-38.40
$0	24	$0	$-5	$133.44	$-133.44