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6. Next calculate marginal revenue, knowing that it is the difference between the revenue at the price shown and the revenue

Marginal Revenue Marginal Cost Price Revenue (price x gallons) Marginal revenue Cost per gallon Variable Cost Fixed Cost Tota

Please help with question 6. please answer question in table format. thanks for your help. below this text is info you might need from previous questions. Thanks again.

CDEF 4. Cals son is studying in the MBA program at UMUC. He tells his father that profit maximization occurs when the margin



ор day can Profit Maximization Gallons Variable Revenue (price x sold per Price Cost (cost Cost per Gallon Fixed cost per gal

8400 8800 9200 $ $ $ 2.6 2.62 2.61 Answer question 5 be $2.749 5. Once you calculate total profit, what is the profit-maximiz

Profit Maxi Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and

Prolt Maximization Base price of unleaded regular delivered in New York harbor (October 21, 2014 $1.740 Added cost to Cal: Ma

Does MC = MR at the maximum profit point? Profit Maximization

   Also please answer question 7 yes or no. Thank you

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Homework Answers

Answer #1
Gallons sold/day Price (Reduction) in Marginal revenue New price(price-0.000025(Marginal revenue/unit) Total revenue Variable Cost/gallon Total Variable cost Fixed cost/day Total cost Daily profit
1 2 3=1/400 4= 2-0.000025 5=1*4 6 7=1*6 8 9=7+8 10=5-9
3600 2.759
3601 0.000025 2.758975 9935.07 2.649 9539.05 250 9789.05 146.02
4000 2.749
4001 0.000025 2.748975 10998.65 2.649 10598.65 250 10848.65 150.00
4400 2.739
4401 0.000025 2.738975 12054.23 2.649 11658.25 250 11908.25 145.98
4800 2.729
4801 0.000025 2.728975 13101.81 2.649 12717.85 250 12967.85 133.96
5200 2.719
5201 0.000025 2.718975 14141.39 2.649 13777.45 250 14027.45 113.94
5600 2.709
5601 0.000025 2.708975 15172.97 2.649 14837.05 250 15087.05 85.92
6000 2.699
6001 0.000025 2.698975 16196.55 2.649 15896.65 250 16146.65 49.90
6400 2.689
6401 0.000025 2.688975 17212.13 2.649 16956.25 250 17206.25 5.88
6800 2.679
6801 0.000025 2.678975 18219.71 2.649 18015.85 250 18265.85 -46.14
7200 2.669
7201 0.000025 2.668975 19219.29 2.649 19075.45 250 19325.45 -106.16
7600 2.659
7601 0.000025 2.658975 20210.87 2.649 20135.05 250 20385.05 -174.18
8000 2.649
8001 0.000025 2.648975 21194.45 2.649 21194.65 250 21444.65 -250.20
8400 2.639
8401 0.000025 2.638975 22170.03 2.649 22254.25 250 22504.25 -334.22
8800 2.629
8801 0.000025 2.628975 23137.61 2.649 23313.85 250 23563.85 -426.24
9200 2.619
9201 0.000025 2.618975 24097.19 2.649 24373.45 250 24623.45 -526.26
to sell 400 more 0.01 decrease in price
to sell the next unit(ie. Marginal unit ) 0.01/400=
Decrease in price= 0.000025
So, marginal revenue at each point= - 0.000025
7. NO.MC is NOT equal to MR at max .profit point
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