Table #1: Th utput Total Marginal CostQuantityPrice Total Revenue Marginal Produ
ID: 1115183 • Letter: T
Question
Table #1: Th utput Total Marginal CostQuantityPrice Total Revenue Marginal Produced Cost e following table presents cost and revenue information for Soper's Port Vineyard. Demanded 0 Revenue 3 5 7 100 xXxxxxXXXXX0 150 202 257 317 385 465 562 682 S68 S68 S68 S68 S68 $68 $68 $68 S68 8 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. 5 Refer to Table #1 a. $68. Consumers are wi b. $80. illing to pay $68 per unit of port wine. What is the marginal revenue from selling the 3rd unit? c. $100. d. $120 6. Refer to Table #1. Consumers are willing to pay $68 per unit of port wine, what is the average revenue when 6 units are sold? a. $68. b. $80. c. $100 d. $120Explanation / Answer
4.T Total revenue is the number of units * price. The total revenue from selling 5 units is equal to $68*5=$340
5. The marginal reveue is the the changein total revenue by selling additional unit of output. The marginal revenue for selling the 3rd unit is the difference between the total revenue from selling 3rd unit and total revenue from selling 2nd unit i.e. $68
6. The average revenue is the price per unit received. The average revenue for selling 6 units is qequal to price i.e. $68.
Output Produced Total Cost Marginal Cost Quantity Demanded Price Total Revenue Marginal Revenue 0 100 - 0 68 68 - 1 150 50 1 68 136 68 2 202 52 2 68 204 68 3 257 55 3 68 272 68 4 317 60 4 68 340 68 5 385 68 5 68 408 68 6 465 80 6 68 476 68 7 562 97 7 68 544 68 8 682 120 8 68 612 68Related Questions
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