Question

5 pts each THE FOLLOWING TABLE FOR LAN'SM LOWING TABLE FOR LAN'S MOWING SERVICES INCOMPLETE FILL IN THE MISSING INFORMATION AND ANSWER THE NEXT 2 QUESTIONS Wlawns mowed/day 39.00 total revere profit 53.60 total revenue profit total costs 7.00 9.00 10.50 12.50 15.00 18.00 22 00 28.00 3600 46.00 CALCULATE TOTAL REVENUE AND PROFIT WHEN THE MARKET PRICE IS $9.00 CALCULATE TOTAL REVENUE AND PROFIT WHEN THE MARKET PRICE IS $3.60. USING THE TOTAL COST INFORMATION, CALCULATE MARGINAL COST AND DETERMINE THE NUMBER OF LAWNS MOWED AT $9.00 AND AT $3.60 3 WHEN THE MARKET PRICE IS $9.00, IAN WILL MAXIMIZE HIS PROFITS OR LAWNS MINIMIZE HIS LOSSES BY MOWING WHEN THE MARKET PRICE IS $3.60, IAN WILL MAXIMIZE HIS PROFITS OR _LAWNS MINIMIZE HIS LOSSES BY MOWING

Answer 1

Total Revenue is defined as the money which a seller gets after selling a commodity. It is equal to price multiplied by quantity.

TR = Price x Quantity

Total Cost is defined as the expense incurred in order to produce a commodity. It includes variable and fixed cost

Profit- In order to calculate profit subtract total revenue from total cost.

1) Total Revenue and profit when the market price is $9.

=> Table . Lawns moved /day: - Total Cost $ 9.00 1 Total I Profit Revere -7 10.50 12:50 18 27 7.50 14.50 15 21 36 45 118 27 54 63 35 36 72 36 146 781 ta's 46

2) Total Revenue and profit when the market price is $3.60

=> Table : Lawns moved /day. I $ 3.60 Total cost Total I Profit. Revenue -7 -5.4 3.60 7.20 -3.3 10.50 12-50 10.8 -1.7 15 14.4 -0.6 18 18 21.6. -0.4 25.2 - 2.8 | -7.2 36 28.8 46 32:4 - 13.6

I 3) when the market price is $9.0 .LOLLILL2222.22.29PPT in the market price is $9.00 IAN will maximiz is profit or minimize his losses by moving Shawns. Since profit is maximumo at 83 4) When the merket price is $3.60, IAN will maximize his profit or minimize his losses by mowing 5 Lawns since there is no need to No Loss