L. Te T Can sell only a limited amount of output at the market price before the
ID: 1114731 • Letter: L
Question
L. Te T Can sell only a limited amount of output at the market price before the market price will fall Ket phee to earn higher revenue. 3. Suppose a and sold. What is the average revenue per unit, and how many units were sold? a. $5 and 50. is $100 for the last unit prodaced b. $5 and 100. c.$100 and 10. d. $100 and 50 Table#1 :The followingtable presentscost and revenue information for Soper's Port Vineyard. OutputTotal Marginal Cost Quantity Price Total Revenue Margna Produced Cost Demanded Revenue 100 XXXXXXXXXXX 150 202 257 317 385 568 S68 S68 S68 S68 $68 S68 S68 562 682 Fill up the blank entries of table #1 before answering questions 4-7 4. Refer to Table #1. Consumers are willing to pay $68 per unit of port wine. What is the total revenue from selling 5 units? a. $340. b. $720 c. $820 d. $840. s, Refer to Table st. Cosumen are willing to puy S68 par unit of port wine. What is the marginal revenue from selling the 3rd unit? b $80 c. $100 d. $120 a. 568. 6. Refer to Table #1 Consumers are willing to payS Sper unit of port wine. What is the avenge retrat wher 61 ris as ar $68. b. $80 c.$100 d. $120 RMUNNICHAExplanation / Answer
3. Total revenue = $1000, Marginal revenue = $100
therefore, units sold = 10,
Average revenue per unit = $1000/10 = $100
4. Price = $68, Q = 5
TR = P * Q = $68 * 5 = $ 340
OPTION A
5. Price = $68,
Marginal revenue from 3rd unit = total revenue from 3 units - total revenue from 2 units
= $68 * 3 - $68 * 2 = $68
OPTION A
6. Average revenue when 6 units are sold = total revenue from 6 units / 6 units = ($68 * 6) / 6 = $68
OPTION A
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