Question

Question 2 (3 points) Note: It is best to fill out the full table, even if the question doesnt ask for it. It never hurts to practice filling these out. Quantity Produced Marginal Cost Quantity Demand Marginal Revenue COSTS Total Cost SO $50 $102 $157 $217 $285 $365 $462 $582 REVENUES Total Price Revenue $80 $80 $80 $80 $80 $80 $80 $80 $80 5 6 7 8 5 6 7 8 1. What is the marginal cost of the 5th unit? 2. What is the total revenue from selling 4 units? 3. What is the marginal revenue from selling the 5th unit? 4. At what quantity does John's Vineyard maximize profits? 5. What is the average total cost at the profit maximizing output? 6. What is John's Vineyard's economic profit at its profit-maximizing output?

Answer 1

Question 2 Posts Revenues Quantity produced (Q) Totul Cost Marginal Cost Quantity (TC) Mcs d(TC) Produced price Totul Reveme СР) Magical Revent TR{PXQ) MR: METRY 0 $0 $ 80 1 1 850 $ SO $80 |$80 $80 $102 $52 I $80 $160 $80 3. $ 157 $ 80 4 $ 217 $60 14 $80 | $240 $80 |$320 $80 19400 480 s $285 $ 68 | 5 $ $365 $ 806 $80 $480 $80 7 | $462 8 $582 § 97 7 | $80 $120 | 8 | $80 $560 $80 $640 $80 the marginal cost 12. from the above table we can see that of the 5th unit is $68 . , from the above table we can see that the total revenue - from selling 4 uit is $320 2 mon from the above table we can see that the Marginal revome from selling Ith mit is $80 Scanned with CamScanner

4 Now from the table we can see that price= marginal revonce = Marginal cost = $80 occurs at 6th unit. uce producing 6 units of output manimize vineyard's profits. 32 Now at 6th unit, total cost is 1 Te=$365 Hince anuage total cost of producing out but is! 6 knits of - Te = $365 2 460.83 Economic profit at P-ATC) Q its Profit mari mising output =$7( 80-60-83)* 67 = $ 125.02 cs Scanned with CamScanner