Question

Marginal Total Prote The table below provides prion, revenue and cost information for a monopolistically competitive firm selling drive through car washes in a large city a Fil in the table for the total revenue and total profit enter your responses rounded to the nearest dolor. For the marginal revenue, average and marginal contender your respond rounded to the nearest cent) Quantity of car Price per Total Revenue Marginal Average washes per month) gallon (5) Total Cost Revenue Total Cost Cost 650 528 $10.000 $ 750 $27 $11450 850 5.26 $13.100 950 $25 514950 5 1,050 524 517600 1150 323 $20.450 $ 1.250 5.22 $23.500 521 1,350 5 26.650 530 000 1.450 $20

Answer 1

a) Total Revenue = Price * Quantity

Marginal Revenue of current quantity = Total revenue of current quantity - Total revenue of previous quantity

Average total cost = (Total cost / Quantity)

Marginal Cost of current quantity = Total cost of current quantity - Total cost of previous quantity

Total Profit = Total Revenue - Total Cost

Quantity	Price	Total Revenue	Marginal Revenue	Total Cost	Average Total Cost	Marginal Cost	Total Profit
650	28	18,200	-	10,000	15.38	-	8,200
750	27	20,250	2,050	11,450	15.27	1,450	8,800
850	26	22,100	1,850	13,100	15.41	1,650	9,000
950	25	23,750	1,650	14,950	15.74	1,850	8,800
1,050	24	25,200	1,450	17,600	16.76	2,650	7,600
1,150	23	26,450	1,250	20,450	17.78	2,850	6,000
1,250	22	27,500	1,050	23,500	18.80	3,050	4,000
1,350	21	28,350	850	26,650	19.74	3,150	1,700
1,450	20	29,000	650	30,000	20.69	3,350	-     1,000

b) Marginal Revenue / Cost Graph:

4,000 3,500 3,000 2,500 Marginal Cost/ Revenue 2,000 1,500 1,000 500 650 750 850 1,250 1,350 1,450 950 1,050 1,150 Quantity sold Marginal Revenue -Marginal Cost

Demand and Average Total Cost graph:

4,000 3,500 3,000 2,500 Marginal Cost/ Revenue 2,000 1,500 1,000 500 650 750 850 1,250 1,350 1,450 950 1,050 1,150 Quantity sold Marginal Revenue -Marginal Cost