Big Top is the only circus in the nation. The table sets out the demand schedule
ID: 1107876 • Letter: B
Question
Big Top is the only circus in the nation.
The table sets out the demand schedule for circus tickets and the cost schedule for producing the circus.
Calculate Big Top's profit-maximizing price, output and economic profit if it charges a single price for all tickets.
Big Top's profit-maximizing output is_____tickets a show.
Big Top's profit-maximizing price is $_____ a ticket.
Maximum profiit is $______
Price
Quantity
Total cost
(dollarsperticketticket)
(ticketsticketspershow)
(dollarspershow)
10
0
1,000
9
100
1,600
8
200
2,200
7
300
2,800
6
400
3,400
5
500
4,000
4
600
4,600
3
700
5,200
2
800
5,800
>>> Answer to 2 decimal places.
Price
Quantity
Total cost
(dollarsperticketticket)
(ticketsticketspershow)
(dollarspershow)
10
0
1,000
9
100
1,600
8
200
2,200
7
300
2,800
6
400
3,400
5
500
4,000
4
600
4,600
3
700
5,200
2
800
5,800
Explanation / Answer
Ans)
Big Top's profit-maximizing output is 200 tickets a show.
Big Top's profit-maximizing price is $8 a ticket.
Price Quantity TR=PQ MR=TRn-TRn-1 TC Mc=TCn-TCn-1 10 0 0 1000 9 100 900 9 1600 6 8 200 1600 7 2200 6 7 300 2100 5 2800 6 6 400 2400 3 3400 6 5 500 2500 1 4000 6 4 600 2400 -1 4600 6 3 700 2100 -3 5200 6 2 800 1600 -5 5800 6Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.