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Given quantity (Q), Average Revenue = Marginal Revenue = Price (AR = MR = P) and

ID: 1091755 • Letter: G

Question

Given quantity (Q), Average Revenue = Marginal Revenue = Price (AR = MR = P) and Total Costs (TC), calculate Total Revenue (TR) and Net Revenue (NR). (Enter your answers into the answers boxes in the above table. You do not need lo enter the $ sign.) TR = P times Q; NR = TR - TC The type of firm represented in the previous question is a firm. Is the represented firm in a "profit-maximizing" or a "loss-minimizing situation"? The quantity of output that this firm should produce to maximize profits (or minimize losses) is units.

Explanation / Answer

Quantity

P

Total Cost

Total Revenue

Net Revenue

0

40

30

0

-30

1

40

50

40

-10

2

40

68

80

12

3

40

102

120

18

4

40

148

160

12

5

40

200

200

0

Quantity

P

Total Cost

Total Revenue

Net Revenue

0

40

30

0

-30

1

40

50

40

-10

2

40

68

80

12

3

40

102

120

18

4

40

148

160

12

5

40

200

200

0

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